Very urgent please

TDS 455 views 2 replies

Dear Sir,/ Madam,

My client Foreign tour Operator he payment palastein (jeruslam) to foreign tour agent (Foreign company)

My question:

1. he payment attract tds ? 

2. which rate of tds?

3. or DTAA applicable

Advance thanks

Replies (2)

Dear Vinoth,

 

1. Yes

2. If Individual - 1%

    If Company - 2%

Detailed:-
UNDER 194 C, IF THERE IS AN ORAL OR WRITTEN OR EVEN AN IMPLIED CONTRACT,TDS IS ATTARACTED ON TOTAL VALUE OF CONTRACT.TDS IS ON TOTAL VALUE OF CONTRACT WHICH INCLUDES VALUE OF MATERIAL AND CHARGES FOR WORKS CARRIED OUT BUT NOT SIMPLY ON CHARGES OR ONLY ON PROFIT.


IF THERE IS ANY REIMBURSEMENTS SEPARATELY CLAIMED (BUT SHOULD NOT BE INCLUDED IN THE BILL FOR CONTRACT) ,NO TDS IS APPLICABLE.


CARRIAGE OF GOODS AND PASSENGERS BY ANY MODE OF TRANSPORT OTHRTHAN RAILWAYSIS COVERED UNDER THE TERM CONTRACT.


TRANSPORT OR SERVICE CONTRACTS AND ALL TYPES OF CONTRACTS ARE COVERED
UNDER 194 C.


HOWEVER THE CENTRAL BOARD OF DIRECT TAXES HAS CLARIFIED THAT PROVISIONS OF 194 C, DO NOT APPLY TO PAYMENTS MADE TO THE AIRLINES OR THE TRAVEL AGENTS FOR PURCHASE OF TICKETS FOR AIR TRAVEL OF INDIVIDUALS.THE PROVISIONS OF 194 C HOWEVER APPLY WHEN PAYMENTS ARE MADE FOR CHARTERINFG AN AIRCRAFT FOR CARRIAGE OF PASSENGERS OF GOODS.


HUFs AND INDIVIDUALS HAVE TO DEDUCT TDS ONLY IF THEY ARE COVERED UNDER TAX AUDIT UNDER SEC 44 AB ( SALES OR TURNOVER EXCEEDING IN THE PREVIOUS FINANCIAL YEAR RS. 40 LAKHS FOR BUSINESS OR EXCEEDING RS. 10 LAKHS FOR GROSS PROFESSIONAL RECEIPTS.).

- Surya

Which documents will I furnished if my salary is 336492 per annum.


CCI Pro

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