TDS/Witholding Tax on ProfCharges to Overseas Tech Consulta

TDS / TCS 1749 views 4 replies

kgbaliga

Mentor & Social Activist

43 Points Posted on 05 December 2008

.CASE : Victor is a US based Foreign Consultant engaged by an Indian Company to deal with their US Customers on Quality & technical issues with customers & guide Indian Company on quality & process area.

He is to be paid from India :-

A) Expense Reimbursement :

Reimbursement of his travelling expenses ( thru Credit Card )for visits to customers in US and also any visit to Indian factory

He may be provided with a Credit Card by Indian Company for such expenses.

B) a Professional Retainership of USD 3000 per month

during period of contract

like to know the TDS / witholding tax applicability on above Two types of payments.

Also is there any service Tax liability on Indian company for the services received from overseas consultant.

Replies (4)

Guest

460605 Points Posted on 06 December 2008

Hi,

Reference to a query that I have in the context of Stamp Papers used for agreements.

In the case of agreements between a bank and its client (say a currency forward contract booking agreement) is there is any stipulation that the stamp paper need to be purchsed only by the banker (that is, bearing the banks name in the stamp paper as the buyer of the stamp paper). In case the stamp paper is purchased by the client (that is bearing his name as the buyer of the stamp paper) will it constitute violation of any provision of the Indian Stamp Act or any other legislation..? Kindly please let me know.

Thanks in Advance.

Regards

K Karthik

kumar vivek

190 Points Posted on 06 December 2008

in case of any foreign payment u make to to a NR, u have to deduct tax at source u/s 195

as far as service tax is concerned, it is u who is liable to deduct the deposit service tax on behalf of your vendor.. i am nt sure but sec 67 of finance act,1994 says so