TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2010 Have to issue Form 15cb for payment of legal charges to a law firm based in London.
Payor is Indian co.
TDs shall be deducted or not. if yes at what rate?

Additionally , law firm hasnot given invoice on the letter head instead plain paper. Is it necessary to take invoice on letter head before issuing certificate.

Pls advise ASAP.

CA Ravi Kumar Murugesh

CA Ravi Kumar Murugesh (Expert)
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07 June 2010 First, obtain Auditor certificate from a chartered accountant in form 15CB. They will give certificate even if you submit the invoice copy and agreement or appointment letter, if any.
This certificate, they will give only after payment of TDS from your side duly mentioning TDS challan and other details.
After that, you can upload the details in Form 15CA in www.tin-nsdl.com and take print out and submit along with original audit certificate to your bankers where foreign exchange payments are authorised.
TDS rate is 41.20% and again it will depend on whether you are bearing the TDS or deducting TDS from the payment.

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2010 Being a CA i have to issue 15cb to one of my client who has to pay legal charges to a law firm based in London, UK, So i want to know, Is tds applicable on leagal services provided to an Indian Co. outside India (in london)? If yes, what is the rate of tds?

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CA V. Mohanakrishnan

CA V. Mohanakrishnan (Expert)
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08 June 2010 please note TDS have to be deducted. Please note that the TDS rate has already been given in the reply by CA.Ravikumar. Also go through the DTAA between India and UK to identify whether any benefit is available for a lower deduction under the category of payment