19 September 2009
Dear All One of our client (pvt ltd Software Design co)has an agreement with a co in usa and our client co gives rebate/discount on order placed by them.Now our co has not deducted rebate/discount on invoice and the co now wants to remit the same to foriegn co. we need clarification on below points' 1)Nature of remittence 2)Whether TDS is applicable?if so rate of TDS? 3)Under which Section TDS should be made?
20 September 2009
i dont think there will be any TDS liability for the foreign company ,since it is in the nature or sales/service - return (reimbursement of discount ).No income is accrued u/s 5 , so i dont think 195 (TDS is applicable )
CAclubindia
