Query Regarding on TDS section 194H and 194J
This query is : Resolved
06 November 2024
Dear CA club Team,
I am doing the my company and my Company Name is Varun solution Pvt Ltd and my question is My company is dealing into export and pay some commission as well as taken pay some professional fees payment to outside india.
So Please guide me can i deduct tds under section 194H and 194J or any other section if any other section then what should the Tds Rate and any provision and pls discuss with me example basis
I am doing the my company and my Company Name is Varun solution Pvt Ltd and my question is My company is dealing into export and pay some commission as well as taken pay some professional fees payment to outside india.
So Please guide me can i deduct tds under section 194H and 194J or any other section if any other section then what should the Tds Rate and any provision and pls discuss with me example basis
07 November 2024
The 194H TDS rate is 5%.
For foreign professional payment section 195 TDS applicable at 20%.
For foreign professional payment section 195 TDS applicable at 20%.
07 November 2024
Sir, but I want to know that if I want to pay commission to a person or company outside India, do I have to pay by deducting 5% TDS in terms of section 194H of TDS or I have to pay under any other section of TDS or TCS and do I have to take PAN of the foreign buyer or company or anything else and what do I have to show in the TDS or TCS return?
Secondly, Sir, if I pay professional fees to a person or company outside India, do I have to pay by deducting 10% TDS under section 194J of TDS or I have to follow the provision of TDS or TCS under any other section? If yes, what information do I have to take from the foreign person or company so that what government information do I have to give in my TDS and TCS return so that the return can also be filed?
Please explain my question through an example and also tell me about the accounting entries and accounting standards. This is my humble request to you.
Secondly, Sir, if I pay professional fees to a person or company outside India, do I have to pay by deducting 10% TDS under section 194J of TDS or I have to follow the provision of TDS or TCS under any other section? If yes, what information do I have to take from the foreign person or company so that what government information do I have to give in my TDS and TCS return so that the return can also be filed?
Please explain my question through an example and also tell me about the accounting entries and accounting standards. This is my humble request to you.
07 November 2024
TDS is applicable on foreign payments or charges as per section 195 of the Income Tax Act. Commission paid to overseas agents that do not have PEs in India and carry out all functions outside India, will not attract TDS. Commission paid to overseas agents situated wholly abroad, is not taxable in India.
20% TDS under section 195 applicable for professional fees paid to person outside India.
20% TDS under section 195 applicable for professional fees paid to person outside India.
08 November 2024
Thanks you for sharing the information i understand if any foreign agent located in abroad and doing the commission work in abroad and raise the invoice to indian company or indian taxpayer then indian taxpayer have no responsibility to deduct the tds however if foreign company or commission agent doing the work in the abroad but office located in india and raise the invoice to indian company or indian taxpayer then should have indian taxpayer or company deduct the tds ? if yes please provide me the TDS rate and purpose code ?
apart from this if foreign company or agent doing the professional services in the abroad and office located at abroad and raise invoice to our indian company then should have to deduct the tds by indian company if yes please provide me the Tds rate and purpose code ?
but if foreign company or person getting the professional services doing in abroad but office located at india then indian taxpayer should have to deduct the tds if yes please provide me the tds rate and purpose code ?
and one more thing sir, if i am doing follow the provision then what should compliance documents or forms or return filed by indian taxpayer and keep it the documents and any compliance due date, and and any reporting to govt agencies Please explain me sir all the things ?
apart from this if foreign company or agent doing the professional services in the abroad and office located at abroad and raise invoice to our indian company then should have to deduct the tds by indian company if yes please provide me the Tds rate and purpose code ?
but if foreign company or person getting the professional services doing in abroad but office located at india then indian taxpayer should have to deduct the tds if yes please provide me the tds rate and purpose code ?
and one more thing sir, if i am doing follow the provision then what should compliance documents or forms or return filed by indian taxpayer and keep it the documents and any compliance due date, and and any reporting to govt agencies Please explain me sir all the things ?
08 November 2024
1 yes, 194H TDS applicable at 10%.
2 No, service provided outside by foreign service providers no TDS applicable.
3 Yes, 194J TDS applicable at the rate of 10% as payment made to Indian resident.
2 No, service provided outside by foreign service providers no TDS applicable.
3 Yes, 194J TDS applicable at the rate of 10% as payment made to Indian resident.
08 November 2024
Thanks for sharing the information
09 November 2024
You are welcome..
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