24 March 2011
Dear friend, I done a trasaction with Germany company. my liability to pay that company is 10000 euro. after the transaction germen company give us the wavier of 7000 euro. my question is whether our liability to deduct the withholding tax is on 3000 or 10000 euro. 2. Gremen company not aggree to pay the withholding tax to us. whether Indian company can pay this amount from its own pocket. what type of invoice we should raised whether this includes that tax amount or not?
26 March 2011
You shall deduct TDS on the amount you are paying and you must be having the credit note from the foreign vendor. You should deduct TDS @ 20% and pay 750/- dollars as tax to govt.
CAclubindia
