I have to do make a payment to a client who is providing a Designing & Planning service to our residential project. Payment invoice is 10000$USD. It is my first time making such kind of payment. Kindly explain me in detail what’s procedure I have to follow for making such king of payment, taxes are in our scope. Please provide in detail so I can understand such kind of payments.
22 June 2009
See as you stated in your case that you have to make a payment to a party who is situated outside India for providing services to you. In that event before making any payment you have to obtain a certificate from a chartered accountant practicing in India in this regards and assure that the proper TDS have been deducted and deposited with the govt in time.
For Taxation Point of view you have to go by the articles conferred by the Double Taxation Avoidable Agreement raed with Sec 195 of Income Tax act
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