Tds on payment to non resident

This query is : Resolved 

05 December 2012 Whether TDS has to be deductible U/s 195 on Payment to Non-Resident for the Cargo services rendered outside India

The Non-Resident has not Permanent Establishment in India any more.


05 December 2012 As the services have been provided outside India and the payment is directly remitted abroad, therefore such payment is not chargable to tax in India. Hence TDS shall not be deducted on such payment. Refer circular no 786, dated 07-02-2000.

14 December 2012 Circular No. 786 has been withdrawn by Circular No. 7/2009 [F. No. 500/135/2007-FTD-I], dated 22-10-2009.


Anuj
femaquery@gmail.com




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