Tds of foreign company


01 September 2013 If an Indian Company takes services of an intermediary company registered and situated in USA to receive the payments from its USA based client because of currency conversion issue.

The intermediary will deduct its brokerage and remit the balance.

Then, will TDS be liable to be deducted on such brokerage charged by the intermediary.

If No, why?

If Yes, how much and under which section?

One thing more to mention that the intermediary does not hold PAN in India.

Please reply its very very urgent.

02 September 2013 Seems it shall be taxable in India.

If the foreign party has TRC then rate shall be 20% otherwise 25.75%


Anuj
femaquery@gmail.com

02 September 2013 Loads of thank you sir for replying.

Sir, if the foreign intermediary does not have a PAN, then what will be the TDS rate and under which section?

Also, a 50% shareholding director in Indian Company is also a major stakeholder in the Intermediary company in USA. He is ordinary resident in the said F.Y.

Please reply


02 September 2013 Then the said transaction shall become international transaction and be subject to transfer pricing…..

Anuj
femaquery@gmail.com

02 September 2013 I completely agree with you Sir on this aspect.

But my issue at this point of time is whether to deduct TDS on the brokerage or not?



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