Anurag Kashyap (In Job) (63 Points)
08 August 2012One of the Directors of a group company (who is a foreigner ~ based in London) has recharged his proportionate costs to India based on profit for the period January 2012 to May 2012. Kindly note that the director has no association with the Indian company. We are paying him for the technical services rendered in India from London.
What is the Income Tax Liability in India (Please quote Sections)?
Is the person required to have PAN?
What is the Service Tax Liability, if any?
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7019 Points)
Replied 16 August 2012
The said payment shall be taxable under sec 195 read with 115A @ 10.51% if PAN is there otherwise @ 20 % if PAN is not there.
Service Tax Liability needs t be checked under new regime.
Anuj
femaquery @ gmail.com
CAclubindia
