CA Sahil Singla.. (Service Tax ) (3746 Points)
02 December 2015Dear Sir
My client is a Pvt Ltd company. It makes online payment to compnaies located outside India for purchase of Domains & servers. Plz let me know following:
1. Whether any service Tax to be paid by my client on reverse charge basis ?
2. Whether any TDS to be deducted ? if yes, at what rate ? As, there is no provision for deduction of TDS while making online payment, whether my client has to deposit TDS from its pocket ?
MAHESH
(Tax Consultant)
(114 Points)
Replied 02 December 2015
Service Tax is applicable on reverse charge basis.
TDS has to be deducted as per section 195. while making payment you have retain tds component and balance to be transferred.
Karthik.V.Kulkarni
(Chartered Accountant)
(594 Points)
Replied 02 December 2015
P. Somani
(Student)
(56 Points)
Replied 02 December 2015
1yes Reverse charge will be applicable.
2 for tds prospective 3 rules for income accrued in india
1 Receipt rule 2 resident rule 3 accrued rule
if any of rules is applicable then tds is deducted u/s 194J. if co. who provides services is DTAA OR NOTwith india is also considerable for tax rebate prospective
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