Tds on plant inspection fees & charges paid to foreigner

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Dinesh (Querist)
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09 January 2014 Please clarify whether TDS is applicable or not on following instant .

A pharmaceutical entity of India is to pay Plant Inspection fees & Plant Inspection Charges (Euro 2500) to Foreign Inspectors of Ivory Coast . This is mandatory requirement of Ivory Coast to get Plant & Products approved before exporting to Ivory Coast.

Whether TDS is applicable on above & if yes then at what rate under which sections ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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09 January 2014 TDS under sec,195 will apply on the professional consultancy from abroad

20% if the receiver having PAN, incase receiver having PAN then refer DTAA for the respective country

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Dinesh

Dinesh (Querist)
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09 January 2014 Dear Rameshji,

The Receiver is Foreigner , not having PAN / PE in India.

Whether Ivory Coast is having DTTA with India , if yes or no then what will be TDS in both cases.

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Dinesh

Dinesh (Querist)
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09 January 2014 Please clarify whether TDS is applicable or not on following instant . A pharmaceutical entity of India is to pay Plant Inspection fees & Plant Inspection Charges (Euro 2500) to Foreign Inspectors of Ivory Coast . This is mandatory requirement of Ivory Coast to get Plant & Products approved before exporting to Ivory Coast. Whether TDS is applicable on above & if yes then at what rate under which sections ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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10 January 2014 your plant inspection charges will attract TDS under sec.195. eventhough it is form part of plant purchase, inspection is the professional nature so tds will apply

since th party is not having PAN, you can deduct tds rate @ 20%