TDS under section 195

This query is : Resolved 

27 April 2010 We are making payment through foreign remittance to a Lawyer in Singapore for professional services.Is TDS is applicable and what is the rate of TDS for the FY 2010-11?What other formailties are required like certificate from CA?Please mail me at:ajitacs@gmail.com

29 April 2010 Hai Ajit payment to non resident / foreign countries TDS deduction@ 30.90% under section code 195 ….chllan to submit ITNS 281.
there’s no threshold limit ……..all amount taxable

As per section 195: Every Indian company must deduct TDS on payment to non-resident if the income in charagable to tax under IT Act of India.
2. You have to consider if the payment to Lawyer in Singapore is income chargable to tax in India. It may not be charable to income tax in India if the foreign firm received payment is Singapore and does not have presence in India. (Read section 5(2)).
3. Under section 195(2), you must send an application to your assessing officer to issue you a certificate so that you can send payment without deductiong TDS.
for details about these IT Act sections 195 and 5(2),




You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries