Bipin Parmar (Employee) (28 Points)
14 October 2011I AM MAKING PAYMENT TO FORIEGN COMPANY WHICH IS SITUATED IN PHILIPPINES FOR PROFESSIONAL SERVICES ANDPROFESSIONAL SERVICE HAS BEEN AVAILED IN PHILIPPINES ONLY AND NO CONNECTION WITH INDIA, SO I WANT TO KNOW DTAA WITH PHILIPPINES ARTICLE NUMBER FOR PAYMENT TO FORIEGN COMPANY AND RATE OF TDS TO DEDUCTED AND PAID.
CA. Saurabh Garg
(Chartered Accountant)
(41 Points)
Replied 14 October 2011
Dear Friend
According to section 5 of Income Tax Act the total income40 of any previous year of a person who is a non-resident includes all income from whatever source derived which—
(a) is received 41 or is deemed to be received41 in India in such year by or on behalf of such person ; or
(b) accrues 41 or arises41 or is deemed to accrue or arise to him in
Since the income does not accrue or received in India liability to deduct TDS does not arise hence there is no liability to deduct TDS u/s 195.
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