Section 195

This query is : Open

CA Mahendra M (Querist)
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12 February 2010 Indian Company wants to remit in USD to an foreign Advocate firm. the bill is in the name of a Law Firm. they don't have any branch in India.The services are rendered out side India. the bill description shows that the bill is for the discussion held by the foreign advocate with resident persons over phone.
whether TDS is required to be deducted

CA Prashant Gupta

CA Prashant Gupta (Expert)
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13 February 2010 as services provider is foreign and payment is remitted outside India my view is this is u/s 195(2) and no TDS applicable. But services are used in India so it can be taxable. I am not sure for this.
when there is confusion you should deposit TDS but you can take shelter of sec 248. in which it says that if you deposited tds and you claim that no tds was applicable then you can claim refund.