Section 195

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2015 Foreign company is providing technical services to an Indian company..so can it ask to make the payment of fees for technical services to a local vendor in INR?

Amol S Joglekar

Amol S Joglekar (Expert)
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10 June 2015 Yes, the terms of payment and/or mode of payment can take such a shape.
sec 195 will come into play, in either case, for the simple reason that in the books of account will possess the "Foreign Co's Account " and not the local vendor

Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2015 will tds be deducted ? at what rate? Foreign company is having PAN, TRC,but is having no permanent establishment in India

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Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2015 and billing in INR not an issue? i mean can foreign company ask to do billing INR? in this case what about tds?

Rupesh Jain

Rupesh Jain (Expert)
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10 June 2015 you can make the payment to any one but you have to deduct the tds u/s 195

Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2015 can foreign company ask to do billing in INR?? WHAT would be the tds rate?

Rupesh Jain

Rupesh Jain (Expert)
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10 June 2015 no foreign company make the invoice from its currency not way . you have to deduct the tds when you payment or credit the a/c which ever is earlier.