Tds on nri

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2012 I need to pay an NRI based in Australia 5000$ towards professional fee for work done in Australia for my Australian client
Whether I need to deduct TDS?

Sunny Sonwal

Sunny Sonwal (Expert)
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31 October 2012 It means you are paying on behalf of your client.

You should deduct TDS under section 195.

You have to submit also Form 15CA and 15CB alongwith Form A2 for remitting this amount to the concered person.

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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31 October 2012 Yes,
Need to File Form 15CA After Taking Certificate From Another CA in Form 15CB.
If You are CA, Then Also Take From Other CA.

Read DTAA Between India & Australia.
The Rates Given in DTAA Prevail Over IT Act.
Other Views are Solicited.

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Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2012 other views are solicited.

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2012 As the NRI says he has no base in India and the work done is outside India therfore need not to deduct TDS.

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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31 October 2012 But This Fall Under "The Services Enjoyed in India"
Read With Caselaw:-

CESTAT, MUMBAI BENCH
Life Care Medical Systems

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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30 November 2012 Yes NRI is correct, based on the information supplied, it seems that no TDS should be chargeable in the present case.

Anuj
femaquery@gmail.com

Message likes : 1 times

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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30 November 2012 Dear Anuj Sir,

I Respect Your Views, But TDS Will be Deducted, Since Services Enjoyed in India, Read With Case Law of Life Care Medical System as above Mentioned.

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CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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30 November 2012 Dear Ayush,

You are brining case of CESTAT for Income Tax Law.

Kindly read sec. 9(1)(vii)(b) along with judgement of Bajaj Hindustan(MUM ITAT)

Anuj
femaquery@gmail.com