Pinky Agarwal (Chartered Accountant) (426 Points)
11 August 2011Dear Member,
Whether TDS is required to be deducted in case where payment is made to any foreign Supplier like, if an indian pvt ltd co. is organising education fair in foreign and makes payment in foreign country for various service it had received from foreigner lyk payment made to hall owner for rent and many other fair related expense????
Please reply, its urgent???
Thanks & Regards,
Pinky Agarwal.
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 11 August 2011
Pinky
For this you need to study and analyse the DTAA with the govt of the foreign country. Even if there is no withholding tax under section 195, you have to submit a CA certificate in form 15CB and a print out of 15CA to your AD bank making the outward remittance.
Let us know your thoughts.
regards,
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 11 August 2011
If i am not wrong the asnwer is yes. TDS need to be deducted as per indian income tax rules
CA Santoshi
(Chartered Accountant)
(45 Points)
Replied 11 August 2011
For this refer to DTA between india and foreign country .
Also From 2010 onwards,TDS has to be deducted on all the payments made to foreign party if they dont have PAN number.
Further foreign party can file the return in India and prove that they dont have PE in india and that services were rendered abroad and claim refund of TDS.
Else the best way you should done is that all the dues should have settled in foreign country itself rather then remitting from India.
B/Rgds
CA Santoshi
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
