FOreign payment
This query is : Open
24 January 2009
Comrades,
Pl. clarify...
My client needs to pay some amount to Foreign citizen..(as business commission)
How this amount to be paid, and what are the tax implication.
The amount could be roughtly INR Rs.1 lac
Pl. clarify...
My client needs to pay some amount to Foreign citizen..(as business commission)
How this amount to be paid, and what are the tax implication.
The amount could be roughtly INR Rs.1 lac
24 January 2009
Check with section 195 of The Income Tax Act,1961 and see whether the case fit into the conditions therein. Also provisions of DTAA with that country may be looked into.
25 January 2009
Hi, Regarding Income tax my friend has already clarified.
With respect to Service tax this would be subject to service tax under Import of services rules and being a recipient service tax has to be paid under BAS ( Business Auxiliary Services as it falls under the 3rd category, in relation to business and commerce. Once paid this amount can be availed as cenvat input credit or you can seek refund in terms of the provisions.
Should you need for clarification, provide inputs on the nature of transaction and the reason for payment of commission
With respect to Service tax this would be subject to service tax under Import of services rules and being a recipient service tax has to be paid under BAS ( Business Auxiliary Services as it falls under the 3rd category, in relation to business and commerce. Once paid this amount can be availed as cenvat input credit or you can seek refund in terms of the provisions.
Should you need for clarification, provide inputs on the nature of transaction and the reason for payment of commission
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