Services of foreign national

This query is : Resolved

P.C. Joshi (Querist)
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30 September 2015 Dear Friends,
I have a peculiar problem which involves TDS,Service Tax and FEMA issues.

An Indian company is wants to hire a foreign national for rendering professional services. the foreign national is a citizen of USA and currently is in India on a tourist visa. the fee is Rs 6 lacs. The services will be rendered in India.The queries are:

1. Can an company engage the services of a foreign national who is in India on a touriest visa.

2. Can Indian company pay the foreign national in INR in India who deos not have indian PAn OR the remittance may be made to his foreign account directly. is any TDS applicable on such remittance.

3. What is the servce tax liability of Indian company on remuneration paid for services provided in India by the above foreign national.

Request for immeidtae responsen please.

Thanks

P.C. Joshi

Amol S Joglekar

Amol S Joglekar (Expert)
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30 September 2015 01. It is for the US national to decide if he can render service while on tourist VISA. Company need not bother about the same so long as service rendered is as per the expectation of the company.

02 Income Tax TDS is very much applicable depending upon the residential status of the US national.

03. The service tax is applicable. The company needs to pay the same

P.C. Joshi

P.C. Joshi (Querist)
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30 September 2015 Thanks a lot.
Anyone else wish to share views on this query is most welcome.

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