TDS on NRI

This query is : Resolved

Rahul (Querist)
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26 September 2008 Dear All,
We are a MNC Hydro Power Consultants, We used to get our consultancy payment from Overseas in USD.

Q1. Should we make payments to our consltants (NRI) in india in USD in his NRI account without deducting any TDS on his consultancy bill. (As the services rendered outside India) He has not stayed in India for more than 185 days in a financial Year.

Please suggest.

Thanks

Rahul
09717821107
011-40567603

Ravikumar.G

Ravikumar.G (Expert)
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26 September 2008 Wallace Pharmaceuticals P ltd (2005) TIOL 20 (ARA) - Payment made to a consultant abroad by an Indian Co is liable to TDS

Rahul

Rahul (Querist)
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27 September 2008 But the technical services rendered out side india, and his payment due in out side india, His income in that country is tax free, and there is no any provision to make payment directly from aboard. (to pay aboard we have to open another overseas USD account then make a payment from overseas USD account only) And we are paying only the payment which we received on behalf of him in USD. Not more than the amount we received in USD.

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CMA Jitendra Singh

CMA Jitendra Singh (Expert)
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06 October 2008 "As the services rendered outside India"than in which circumstances payments made from india

Rahul

Rahul (Querist)
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13 October 2008 We have an Agreement with overseas country that our income in that country is tax free, and any income of our technical experts (consultants) is also tax free in that country. We have received USD on behalf of him to make a payment to him, and we are making payment not more than we received in USD.