TDS on seminar fee - urgent

1511 views 6 replies

few employees from our co. are going to attend seminar in india this is conducted by 1 foreign co. they have charged for this in US dollars and we are  paying also in dollars. In the bill they had not charged service tax and also without mentioned PAN.

can any one suggest me at what rate should i deduct tds on this or there would be no TDS at all?

Replies (6)

GD Q.

its applying sec. is 195, under which you have to deduct tax.

but its providing professional services, so you have to consider that also, 

i don't know the perfect ans , just give my view.

i think it should b taxable u/s194J if the company is resident (though it is a foreign company) in india, the activity comes under training for the employees of the company, which invloves professional or technical services by the foreign company

it is an foreign co.

the following income of the foriegn company are taxable in india if it is resident

1) Subject to the provisions of Income tax Act, the total income   of any previous year of a person who is a resident includes all income from whatever source derived which—

          (a)  is received or is deemed to be received  in India in such year by or on behalf of such person ; or

          (b)  accrues or arises   or is deemed to accrue or arise to him in India during such year ; or 

          (c)  accrues   or arises to him outside India during such year :

 

 

Dear friend

If an employer hires an outside commercial coaching or training center for imparting some training to its employees, then the payment made by the said employer to such coaching centre will be chargeable to service tax.  

 

  • If the “Service Tax” element is not clearly mentioned, it is assumed that it is inclusive and the Service provider will make relevant back calculations and pay the same to the government.

 

  • Here, be clear that ‘Services are provided in India’.   And Income is generated in India.

 

  • Next, You need deduct tax at source.   If it is not deducted at source, the liability will be on the enterprise, receiving service.

 

  • Service provider must mention ‘Service tax registration number” ( along with ‘Permanent account number’, if Service tax registration number is not PAN based.)

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