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TDS professional Charges

R Manjula Padmavathy (Articled clerk) (26 Points)

01 December 2008

Can TDS be deducted and TDS Certificate be issued for a foreign consultant for his services rendered in India.

Otherwise is the company liable to pay TDS to govt from its pocket?

Please clear my doubt.

Thank u

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6 Replies

(Guest)

Yes, TDS is deducted and certificate is also required

RAJU (LEARNER) (1089 Points)
Replied 01 December 2008

Hi,

Yes sums payable to a non-resident is liable for deduction of tax U/s.195. If the receipient is not agreeable for deduction, the company has to pay the same.

Rishubh Mathur (Analyst -Taxation) (442 Points)
Replied 01 December 2008

Yes, tds is deductible on remmitance of professional fees to non-resident for services rendered in India as per prescribed rates. Further, you may refer DTAA for clarification

jayalakshmi (Accounts Officer) (100 Points)
Replied 01 December 2008

Originally posted by :Rishubh Mathur
"	Yes, tds is deductible on remmitance of professional fees to non-resident for services rendered in India as per prescribed rates. Further, you may refer DTAA for clarification	"

If the foreign party doesnt agree for deduction, and if we pay to govt, What is the mode of refund, Can we show it in our returns and claim the refund?"

swati (accountant) (24 Points)
Replied 10 November 2009

In General TDS on Profeessional Fees is10% if the payment in above 20000/-,pl clear what should be the range of payment if TDS is @ 11%

Sunil (Trader) (2611 Points)
Replied 11 November 2009

TDS to Foreign Consultant depends on what independent service you are obtaining. For royalties and technical, managerial and Consultancy Service the rate is 20% Non Company and Company for agreements before 2005 with Central Government Approval and 0%. For Professional Services like lawyers, accountants, professors and doctors it is 30% to individual and to foreign company the rate for foreign companies.. Edu and H edu Tax has to be also deducted from Gross amount.

You can apply provisions of DTAA with the contracting state in which the professional is having residence to determine the maximum rate India can charge on his service.