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Help on TDS Matter

Abinash Ghosh (Service) (41 Points)

20 August 2009

Dear All,

When a foreign company did not have any establishment in india henceforth don't have the PAN no. provides service in India. How the TDS will be deducted on that sercice by the receiver of service.

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5 Replies

RITESH KOTHARI (B.COM, FCA, DISA(ICAI)) (778 Points)
Replied 20 August 2009

IN YOUR CASE PRIMA FACIE THE FOREIGN COMPANY IS NOT LIABLE FOR ANY TAX IN INDIA THUS AS PER SECTION 195 THERE IS NO LIABILITY TO DEDUCT TDS .SECTION 195 INSTRUCTS TO DEDUCT TAX ON INCOME WHICH IS TAXABLE IN INDIA ONLY.

BUT UNLESS THERE IS NO SPECIFIC EXEMTION TO THIS EFFECT CERTIFICATE FROM AO SHOULD BE OBTAINED BY THE FOREIGN COMPANY BY MAKING AN APPLICATION U/S 195(2).

HOPE I AM CLEAR.

REGARDS,

RITESH KOTHARI

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Abinash Ghosh (Service) (41 Points)
Replied 21 August 2009

Dear

Thank u. but the fact is that since the income is arise in India the service receiver is liable to deduct tax from the foreign company bill. In that case what will be the process to deduct tax.

Abinash.

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 21 August 2009

If TDS deductible then deductible u/s 195. Also check the rates as per DTAA in respect of the country you are making payment. Also now form 15CA & 15CB is to be filed before making foreign remittance.

Ankit Agarwal (Semi Qualified Assistnt) (40 Points)
Replied 05 September 2009

Should TDS be deducted on data entry expenses incurred in college if the amount incurred is Rs.5000/- p.m i.e. Rs. 60000/- Annually

Ankit Agarwal (Semi Qualified Assistnt) (40 Points)
Replied 05 September 2009

Originally posted by :Ankit Agarwal
"	Should TDS be deducted on data entry expenses incurred in college if the amount incurred is Rs.5000/- p.m i.e. Rs. 60000/- Annually	"