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tds liabilty on payment to foreign company

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08 January 2009 Should a closely held Indian company deduct tax on inspection fees paid to dubai comany.

If yes at what rate?


This dubai company has no establishment in India & is not wiling to bear the tds cost.

08 January 2009 From a reading of Article in http://www.thehindubusinessline.com/2006/10/07/stories/2006100700031100.htm
I understand that TDS has to be affected

If it is not willing to bear cost, the Deductor has to bear depending on negotiating position etc

08 January 2009 Sir what will be the rate if the dubai company is registered limited company &

what will be the rate if the dubai company is not registered company


08 January 2009 It does not matter that it is registered or not.

08 January 2009 It is your liability to deduct TDS. It does not matter they want to bear the TDS cost or not.

08 January 2009 Dear Sir,

Thnx for the immediate response,

What is tax rate at which it is to be deducted.

08 January 2009
Whether it comes under Professional Services or Contract etc., depends on facts and nature of transaction between. So based on facts, identify the Section applicable and then see latest edition of any Ready Reckoner

08 January 2009 Thnx a lot sir.




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