TDS and PAN applicability for foreign company payment

This query is : Resolved

ANIL KUMAR (Querist)
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24 December 2010 Dear All

our client is an Indian event management Company taking contract for event at Dubai. Our client required to take services like lodging, boarding, stage show , lighting etc. services from an Dubai based company and required to remit USD from India to Dubai. Dubai based company is foreign national for Indian context , have no PE in India, have no PAN in India I have certain questions :-
1.Whether this remittance is liable for TDS deduction in India ? if yes , rate of TDS.
2. foreign firm (Dubai based firm) is required to get PAN in India.
4. What are the DTA provision with this transactions
3. As a CA can we issue Form 15CB

Pls do the needful

Thanks

CA.Madhusudan B.P.

CA.Madhusudan B.P. (Expert)
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25 December 2010 1 & 2 If the foreigner does not have PAN in India, then rates of witholding tax shall be 20% irrespective of the provisions of Income tax or DTAA, as appears u/s 206AA.
3. Practising CA are authorised to sign on the Form 15CB, then only the person / assessee can make the payment to the foreign vendor.

SERVICE TAX MAY ALSO ATTRACT UNDER DEEMED SERVICES.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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25 December 2010 I beg to differ since the money expended is being used to earn income from source outside India.Hence in view there is no liability to deduct TDS in the present case.

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