Consultancy Services

This query is : Resolved

mohan rao (Querist)
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12 May 2009 Dear Sir,
our company Receiving the Foreign Consultancy Services from Spain and Germany Individuals(Not a company in Foreign Country)

Weather the Company in india is liable for Service Tax and TDS Provisions

Pls. Resolve the issue

Ca Anand Dubey

Ca Anand Dubey (Expert)
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12 May 2009 1. Service Tax - Yes (refer provision for Import of service).
2. TDS- Section 195 apply depending on residential status.

BeyondConsultants

BeyondConsultants (Expert)
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13 May 2009 Not sure if these consultants are present in India or not.

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jegannath G

jegannath G (Expert)
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13 May 2009 Service provider being a non-resident, the service receiver has to pay service tax on the consultancy services received.

TDS needs to be deducted under section 195 depending upon the residential status & also DTAA applicable.

taxindiaconnect

taxindiaconnect (Expert)
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13 May 2009 IN the absence of the some basic information like their presence in India etc I am assuming that the service have not been provided in India, my very brief answers to your query would be

Service Tax - yes applicable
As per article 14 of DTAA between India Geamny and India Spain, NO withholding is required from these payments. You need further clarification, you are welcome.