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TDS ON NON RESIDENT PAYMENT

nikita SHAH (chartered accountant) (194 Points)

05 December 2018

OUR IS A SERVICE COMPANY. ONE FOREIGN COMPANY WHICH IS FROM SAME FEILD, GIVE US ONE SERVICE CONTRACT IN INDIA.PLS HELP ME TDS APPLICABILITY ON THIS TRANSACTION.

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4 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 05 December 2018

Since you will perform work on contract basis so you dont have to deduct TDS of foreign company.

It will deduct TDS from commission or contract charges it will pay to you

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nikita SHAH (chartered accountant) (194 Points)
Replied 05 December 2018

We will perform contract. But 15% of bill amount will be charged by foreign company from us. So we will remit them. So now tds?

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 05 December 2018

Dint get you. Could you ellaborate little?

nikita SHAH (chartered accountant) (194 Points)
Replied 05 December 2018

One US Based hospitality service provider company entered agreement with the indian company (us), we also provide hospitality service in india. Agreement is to provide service another indian company by us. We will bill to indian company. We will pay 20% of bill amount to us company for this contract. So now on remittance of this 20%, we should deduct tds. Then how much.