TDS u/s 195 for Forex Outward Remittance

TDS 1256 views 1 replies

We are a Software Services Company offering services to our customers in UK and Europe. While providing such services, in one case, we had to take help of a UK Partner who has deputed his employee to work with our team in providing this service in UK.

Now the UK Partner has raised a invoice in GBP for the work delivered in UK against our Company in India. The payment needs to be made from India.

I have two queries and request your inputs.

1. In the above scenario, should we deduct TDS u/s 195 and if so what % is applicable?

2. If no tax is applicable how do I get a certificate from IT department, so that there are no issues in future?

Replies (1)

Yes u need to deduct the TDS U/s 195 @ 20%


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