Tds on foreign payment

This query is : Resolved 

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
16 August 2012 If a company wants to make a payment to a foreign service provider company.

Foreign service provider company is providing exhibition service to Indian company in US. where by Indian company can have a stall in US. Exhibition.

In my opinion TDS will not be applicable as service is provided outside India.

whether a Chartered Accountant can issue a form 15 CB stating NO TDS applicable in this case in point no 16 of form 15 CB.

NOte : Please reply only if you are sure about it.

16 August 2012 If the Income of the non resident is business profit for him/her then As per Article 7 of the double tax avoidance agreement with USA, the Income is not chargeable to tax in India.
Accordingly, TDS is applicable on such payment.

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
16 August 2012 hi AMIT,

As you said as per article 7 if it is business profit then it is not chargeable to tax.

but in last line you again said TDS applicable why it is so?

In my case it is a business income to the foreign party.

so what is your final opinion?


16 August 2012 Sorry, TDS is not applicable.
Typographical mistake.. thanks

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
16 August 2012 Hi amit,

I read article 7, you are absolutely right.

thanks for your reply.

Can i ask one more related query : in form 15 CB whether it will covered under point no 13 or 14 or 16.


16 August 2012 It will fit under point no. 14

16 August 2012 Pls also check, Either there is no PE of Non Resident or the income is not pertaining to PE in india.
Thanks

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
16 August 2012 Ya already checked that concerned party has no PE in India.

bye keep in touch... i have sent my personal details in comment.


01 October 2012 Here the TRC(Tax Residency Certificate ) from the Foreign Vendor needs to be obtained before issuing the Form 15CB.

Anuj
femaquery@gmail.com



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries