AN Indian Company receives Consultation Service on a regular basis from its related Foreign Compnay. The said Foreign company doesn't have any base in India. Their Employees visit Indian Company once in a while, but that doesn't even exceed 90 days altogether in a Financial year.
In this case, please advice me, whether the Indian Company has to deduct TDS on the Consultation Payments and at what rate(if yes)?
In case, the Foreign company's employees visit more than 90 days, what will be the effect?
Please, i request you to include the respective tax rates with section, if its applicable?
20 November 2009
As you said Indian company is receiving the consultation fees from foreign company. Then you don't need to deduct any TDS.
If the employees of foreign company visits india & the expenses of the same is incurred by the Indian company. If the same is recovered from foreign company then there will not be any problem. If the same is brone by the indian comapny then the implications of such transactions will be shown as entertainment expenses.
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