Our business model, we get our contract from foreign vendor which is outside India for the work outside india and based on the contract we arrange a consultant who is non resident (Foreign resident).we got our payment from foreign vendor and out of the payment from NSC we will transfer 50 to 60% to Non resident.
my doubt is right no we deduct tds at the rate 10.4% as per the definition and case laws we dont need to deduct TDS kindly clarify.
SECTION 9(1)(vii) –FEES FOR TECHNICAL SERVICES
Income by way of fees for technical services payable by a Resident, except where the fees are payable in respect of services utilized in a business or profession carried on by such person outside India or for the purposes of makingor earning any income from any source outside India.
Case law referrence
Aqua Omega Services (P.) Ltd v. ACIT [2013] 31 taxmann.com 179 (Chennai - Trib.)
CAclubindia
