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TDS u/s 195A

10 May 2007

The terms of payment to Non Resident require payment of income net of tax.

The payee has borne the TDS by following the grossing up provisions of sec 195A of the income tax act.

Would the payee be able to claim the amount of TDS borne as deduction from business income.

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2 Replies

krunal_love (25 Points)
Replied 18 May 2007

Dear Addhadphale, You need to tell the nature of income payment to NRI . Income tax act provides specific provision for grossing up of TDS and claiming of its deduction by payeer. Like one is for Sec.6BBB(i forgot exect provision but its near by)

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sushil (Accounts) (62 Points)
Replied 10 November 2008

Originally posted by :krunal_lovei

Hi can we issue TDS certificate for the tds deducted u/s 195.TDs was deducted in 2nd quarter and return has been already filed for the same. and can a UK co. claim deduction for TDS deducted u/s 195.

Dear Addhadphale,
You need to tell the nature of income payment to NRI . Income tax act provides specific provision for grossing up of TDS and claiming of its deduction by payeer. Like one is for Sec.6BBB(i forgot exect provision but its near by)