murali (student) (47 Points)
12 October 2015An Indian company is giving a job work to person (i.e company, firm etc) in srilanka by supplying materials and getting back the finished goods(after job work) by indian company. my question is whether TDS is applicable on the job work given ? if so please provide the relevent provision of the income tax.
Karthik.V.Kulkarni
(Chartered Accountant)
(594 Points)
Replied 12 October 2015
Yes tds needs to be deducted on such payment as jobwork amounts to fee for techical services u/s 9(1)(vii) and same is deemed to accrue or arise in India . Technical services means industrial and applied sciences . So tax needs to be withheld as per provisions of this act and dtaa .
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
