Our Back office Located in India and our Headquarters located in Hongkong. We are making the Vendors payments from India which was spent in India office.
Payments like International/Domestic Air Tickets , Rent for India Office etc., We are deducting TDS on Service charges on booking the Air tickets.& Rent
In case if the payment made directly from our Head quarters (Hongkong) for the above mentioned payments whether TDS is Applicable?
27 June 2014
No tds is deductible when payment is made by non resident to resident where source of payment is outside India. but it is advisable in present case to continue to make payment from India and deduct TDS thereon. as such payments are totally taxable in India and if payment would be made by non resident then it would go out of tax net.
CAclubindia
