Harish (General) (38 Points)
23 May 2008Hello every one
We have a registered trust in india. We have to make payment for services outside india (for web hosting) amounting to GBP 180.
Please let me know whether making payment in indian rupees will attract any foreign currency laws or income tax.
Please guide. This is urgent
Thanks
Azmathullah Khan
(Accounts Manager)
(1386 Points)
Replied 23 May 2008
Yeah U have to pay TDS under section 193 for payment to foreign country the rate of TDS is 30%, whith ED., 3%. if ur paying the amount from cheque or DD.
Best option to go with Credit Card to avoid TDS from ur side., but I ting it is unofficial
Harish
(General)
(38 Points)
Replied 23 May 2008
Thanks for reply.
But the foreign company has no place of business in india and its income is not chargeable to tax in india. Whether tax is still deductible.
Azmathullah Khan
(Accounts Manager)
(1386 Points)
Replied 23 May 2008
It a RBI rule, whthout TDS payment U can't trf., fund to foreign with any bank.
Azmathullah Khan
(Accounts Manager)
(1386 Points)
Replied 28 May 2008
Sorry, I have no such webside link, U better approach UR Auditor
CAclubindia
