19 July 2010
We(Firm) are taking part in a show in Paris, the fees is to be paid to the foriegn company not having any office/ connection in India, through Euros currency. The Bank is asking for Form 15CA & 15CB towards deduction of TDS.
19 July 2010
yes....TDS will be applicable under Section 195 as the income of the person organising event in Paris is arised in India u/s 9 of Income Tax Act, 1961. However if in DTAA no tax is applicable then only TDS shall not be applicable.
19 July 2010
As per the recent amendment in section 9 of Income tax act 1961proposed by finance bill 2010, as passed by Loksabha on 29th April 2010;all payments made to a nonresident outside India shall be taxable in India regardless of the fact that whether the services have been rendered in India or not. It is the situs of the payer and situs of utilization of service which is relevant now and not the situs of rendering service.
If as per DTAA , on tax, then no tds will be deducted.
But Form 15CA & 15CB formulities are to be fulfilled.
CAclubindia
