TDS - Foreign Remittance

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SANDESH

SANDESH (Querist)
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17 June 2009 Is some body send me list of expenses which can be remitted without deducting TDS on Foreign remittence

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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17 June 2009 For foreign remittance the procedure to be followed is

Step 1 ; Check to which country you are paying the amount.

Step 2 : Find whether Doutble Taxation avoidance agreement has been entered to that country.

Step 3 : If entered then the tax has to be witholded (which is nothing but tds deduction in ohter form) as per the percentages stated there.

Step 4 : If no DTAA is there then you have to deduct tax as per section 195 of the income tax.

Note : You can follow DTAA or Section 195 even if DTAA is there. But it is advicable to follow DTAA only if it exists.