ALOK KUMAR JHA (STAFF) (74 Points)
29 June 2012friends please help,
our company expanding plant so we have purchased machinary.we called persons from germany to install the machinery.now my question is how will tds calculate on the amount of their fees which they are charging for installing the machinery.under which section tds will be deducted.
what if india has double taxation agreeement with germany.
nishchal
(internal auditor)
(24 Points)
Replied 30 June 2012
Dear Alok....
as per me, TDS should be deducted under sec 194 J-Fees for Professional and Technical Services. U can book the expense either as Professional fees or Technical assistance.
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 05 July 2012
Mr Nischal, as the fees are incurred in connection with the installation of machinery, so I think that the prof fees also need to be added to the cost & net payment after TDS should be made to the professionals.
CAclubindia
