Help needed on international payments from India

Ganesh (Employed) (38 Points)

10 June 2009  

Hi

I represent an Indian company. We have hired the professional services (software development and consulting) of a few individual foreign nationals from Europe, to work for one of our Clients in Austria.

For these services rendered, we shall be invoicing our Client in Euros, receiving the payment in Euros and also paying these individuals in Euros. We have a contract with our Client and also contracts with the respective individuals for providing these services.

Would like to know the incidence of tax on these transactions. Is there a need for any tax deductions on payments made as above? If yes, under which Act and the relevant sections quoted would help us out.

Look forward to some expert opinions so that we could handle this accordingly without landing into any statutory non-compliance.

Thanks in anticipation.

Ganesh