Tds u/s 195 on import of computers

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DEAR ALL,

WE are a pvt ltd company and we have imported lenovo computers from xxx india limited sinagpore company for their installation at our under construction factory. 

xxx india limited company has issued invoice from its singapore branch from where we have recieved our computers

 

We have recieved the goods after all custom clearance formalities

 

I would like to know that while making payment to singapore branch are we liable to deduct TDS U/S 195 OR NOT AND if yes Than at what rate ??

Replies (3)
Dear Rachna As far as computers are concern, there is no liability to deduct TDs as you paid for the goods which you have imported. Regarding the installation services, it is covered under the technical service, hence you have to deduct TDs @ 10% on such service amount if invoice shows the service portion separately.
Dear nishant will Tds be deducted u/s 195 for payment to non resident ?

Kindly read DTAA between India and Singapore. Fees for technical service is taxed at 10% therein. If the payee , which is a non resident company, does not have a PAN in india then section 206AA will come to picture.

Thanks,

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