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TDS on foreign payments

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(Querist)
15 March 2009 Hello sir,

Does tax need to be deducted on payment in the nature of contract to a foreign company. The payment is for installation of machinery in India for an Indian company.
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CA Nitin Wadhwani

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CA Nitin Wadhwani (Expert)
15 March 2009 If it is capitalized then no, otherwise yes.

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