Nutan (Working) (50 Points)
24 May 2012We have take services from our related entity who is in UK. The service was in the nature of supervision. The total stay days in India was 37 days, however the services provided was for 25 days.
Can any one advise whether TDS needs to be withholded in this case.
Thanks
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 24 May 2012
yes, liable to deduct withholding tax
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 24 May 2012
TDS needs to be deducted u/s 195 of the Income Tax Act as Technical Consultancy services.
Read the DTAA with UK to know the rates.
Regards
Prateek
Nutan
(Working)
(50 Points)
Replied 25 May 2012
Can any one tell the reason why it will be liable for TDS
As per artcle 13 (4)(b) the services would be considered as technical service only if the service is "made available". The services provided was of Supervisory nature. So supervisory work is not of " make available" nature.
Even then u would defend as taxable in india.
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 25 May 2012
"made available" means provided or to be provided in India.
CAclubindia
