Dhananjay Reddy (Audit Manager) (194 Points)
05 March 2012Dear friend pls clarrify me regarding the following query.
1) A is an NRI company
2) B is an Indian Company
3) C is an NRI Company.
Here B acts as an intermediary for A & C. B company brings business to A company. A company will directly raise invoice in the name of C. For that business C will make payment to B who in turn will make payment to A. For this business B will get commission from A.
My query is whether B has to deduct any tax for colecting amount from C and making payments to A ????
ACCOUNTANT
(Student)
(559 Points)
Replied 05 March 2012
Tax will be charged when income can be deemed or directly received from India........ Here since the payment and it's source are foreign......probably no tds is attracted.... However it may be attracted on the commission charged.....
But...... i suggest to get more clarification on taxability of NRI co's......
CAclubindia
