40(a)(iii)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2010 This section stands apart from MAIN 40(a) due to the unique characteristic of sec 192 in which TDS is deductible on payment unlike others(credit/payment which ever is earlier)
My doubt is ..this section is applicable to
a)payment to resident outside india
b)and payment to nonresidents in india

Then which section covers payments made to residents in india? and payments made to non-residents outside india?

and how are they allowed?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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29 July 2010 Section 40(a)(ia).

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2010 For the first part..
But 40(a)(ia)covers only payments in the form of 193,194,194H,194J,194C
it does not cover payments o 192 nature.

and also for the second part..
it does not cover payments to non-residents.

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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29 July 2010 Payment of salary to residents is not covered in any section.

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2010 then how about payments to nonresidents outside india?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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29 July 2010 40(a)(iii) salary to non residents

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2010 are u sure it covers payment to nonresidents within and outside India as well?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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29 July 2010 [40(a)(iii) any payment which is chargeable under the head “Salaries”, if it is payable—

(A) outside India; or

(B) to a non-resident,

and if the tax has not been paid thereon nor deducted therefrom under Chapter XVII-B;]

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