a Nepali contractor is working in Nepal for an indian company. when indian company will make payment to Nepali contractor is tds applicable?
ARUN KUMAR (manager) (25 Points)
02 August 2011a Nepali contractor is working in Nepal for an indian company. when indian company will make payment to Nepali contractor is tds applicable?
Shruti Rajesh Shetty
(Accounts and Audit Assisstance)
(22 Points)
Replied 02 August 2011
Since the Nepali Contractor is Non resident in India and is rendering service in Nepal for Indian company so income recieved by him will not be deemed to be recieved/accrued/arised in India. Hence his income will not be includible in his total taxable income in India so he will not be liable to pay tax in India. So TDS Provisions won't be app[licabe to the Nepali Contractor
In case Nepali Contractor would have rendered services in India his income would be deemed to be Accrued in India so TDS provisions must have been applicable to him.
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