JAYANTA (Accountant) (97 Points)
30 May 2015Dear Sir,
We are management company , we received one bill from our consultant based on London ( Not NRI) , the bill is in GBP , now I want to know the following :-
1. Should I deduct TDS on his bill ( as he is foreigner and obhiously he has no PAN ) if yes should I deduct @ 20%.
2. What will be effect of Service Tax , should we pay Service Tax on his behalf and will take Input credit on the same amount ( under reverse charge mechanism ).
Waiting an early reply.
Regards
Jayanta
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 30 May 2015
gupta
(Accountant)
(305 Points)
Replied 30 May 2015
Very very thanks madam for updating me.
The consultant is a British so he has no PAN then I have to deduct @ 20% ? Is it correct ?
Awaiting your reply
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 30 May 2015
It is actually @ rates in force or @ 20%, whichever is higher, in case of no pan.
Rates in force: https://www.incometaxindia.gov.in/Charts%20%20Tables/TDS%20Rates.htm
(for royalty it is recently amended to @ 10% instead of 25%).
If the rates in force is more than 20%, then such rate is only applicable.
Surcharge (if applicable) + EC + SHEC extra
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