Tds on fees payable to a resident in outside india

Madhu (student) (65 Points)

15 December 2012  

Dear Sir

Recently we got a problem we got a work Outside india for that we appointed an Engineer who is working in abroad and for that he opens a bank account in abroad but we received the amount from Our Customer in EEFC Account in USD

For that is TDS is Deducible for that consultancy fees payable to Our Engineer ?

The Consulatancy amount payable to Our Engineer is Taxable in His Hands in India ?

He also Undertook other contracts and he is residing in India is less than 60 days in a Year

Can you explain about the  Income tax consequences