Tds on payment of testing charges to nri

This query is : Resolved

Manish Kumar (Querist)
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09 March 2017 Hello,
We are a subsidiary Company of a Denmark Based Company (100% FDI) We from India has to remit some payment to an individual person of Bangladesh towards testing charges. Will This attract service tax and TDS in India.?

CA Shubhanshu Jain

CA Shubhanshu Jain (Expert)
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10 March 2017 Hello, First of all as service provider is situated out of India same is the case of import of service and hence reverse charge is applicable so you have to deposit service tax. and since payment is made to a non resident TDS provisions are also applicable because testing charges are in nature of professional services but TDS deduction is governed by section 195 of the act.