deduction of TDS on foreign payment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2011 What is the status of tax deduction if an Indian company makes Payment to a canadian company (Non-Resident) of Royalty or Fee for Technical Service for the purpose of earning Income from source outside India

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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02 March 2011 TDS under section 195 will apply. Also. provisions of DTAA needs to be checked.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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03 March 2011 The same shall be subject to provisions of section 9(1) (vi)(b) and 9(1) (vii)(b).

But the answer of source outside iNDIA is really difficult to answer and lot of things need to be seen before coming to that conclusion.

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