Sadhuanj (MBA) (68 Points)
12 May 2009Ours is a Private Limited company in India, sent our product to a company in Czech Republic for testing in their lab. After test completed the Czech Republic Company submitted their analysis report for which they raised the bill. Here my querry is whether this payment to Czech Republic Company will attract the TDS. Please help us to clarify.
S Anjaneyulu
Sachin
(Chartered Accountant)
(419 Points)
Replied 12 May 2009
Dear S Anjaneyulu,
whether tds will be deducted or not in the case of foreign entity there is one thing what is the residential status of that foreign company. please write your problem in the detail sothat i can help you my email is sachinagarwalcallb @ gmail.com
Ramakrishna
(Financial Executive)
(438 Points)
Replied 17 May 2009
Dear Anjaneyalu!
As rightly pointed out by Mr.Sachin, the residential status for IT purposes of the deductee is the deciding factor.
Again going by your version, if the samples are sent for testing purposes to the foreign company at Czech republic, the services being rendered outside India, and if the foreign company being non-resident in India, then no income accrues for the company in India, and therefore there will be no liability to make TDS under Section 195.
Do post your response!
Good Bye! Cheers!!
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
