service rendered outside india

This query is : Resolved

Guest

Guest (Querist)

22 October 2008 Hello Experts

I have queyr about a case
the case is "We send some part to outside india for repair and their maintence" and we pay them for the maintenace or repair.

Now my question that Is there any liability for TDS my opinion about it that the service has been rendered outside india and the payment is also made them outside india so there should not be any liability for TDS.

as per latest decision is it required that service must be rendered in India and utlized in india?

is it fall under section 9 or not?

CA Shailesh +91 9393926464

CA Shailesh +91 9393926464 (Expert)
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23 October 2008 There is no liability for deduction of TDS on the expenditure since it is not taxable income under Indian Income Tax Act in the hands of the recipient

Guest

Guest (Querist)

23 October 2008 thanks for ur reply but need explanation

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Guest

Guest (Querist)

24 October 2008 kindly reply soon with explanation of sections

Deepak Agrawal

Deepak Agrawal (Expert)
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12 November 2008 It is covered under export of services rule.
There are some conditions to be fulfilled for getting elligible as export of services.
It these conditions are satisfied, no service tax is to be charged if provided outside india.