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Tds applicability

AMEER SHA (Learner) (203 Points)

02 June 2012

Hello Friends,

We are importing a machinery from Italy. My question here is Does sec 195(TDS) of the Income Tax Act or any other provisions apply here ?. Please help

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3 Replies

Honey (student) (134 Points)
Replied 02 June 2012

No TDS will not apply simply because on purchase of goods in India, TDS is not applicable henceforth TDS cannot be made applicable when purchase is from outside the country. Simple Logic

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Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 02 June 2012

There is no applicability of TDS on purchase of machinery and materials. Hence, even in the case of imports, no such TDS can be levied.

AMEER SHA (Learner) (203 Points)
Replied 20 July 2012

Hello Friends,

Thanks for the response.

TDS is not applicable provided that the person importing the goods gets a declaration from the foreign vendor that they do not have Permamnent Establishment in India as envisaged in Sec 9 and Double Taxation avoidance agreements with that country.