Withholding Tax - UAE

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Dear Friends,

Can you guide me on the following?
 
If we were to contract out some services out of UAE, is there an obligation to deduct withholding tax? Since UAE is a tax free country, we are told that there is a treaty which exempts indian companies from deducting withholding tax.
 
Waiting for your positive response.
 
Regards,
 
 
Ashish Jain
Replies (3)

Hi UAE being tax free country no tax will be dedected income received thru india is brought over here in UAE,,,however,since the income from the contract is earned and received in India, it will be taxable....

Dear Mohan,

Under contract, payment will be remitted outside India to UAE in Foriegn Currency to some consulting firm.

Shall we deduct withholding tax?

 

Ashish

 

 

Logic speaks u sud as it is earned and received in india


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