Question ID :
44801
TDS on Foreign Payment
Hi All, An assessee is going to make payment to a Foreign Company for the repair work done on a machinery part based on the Invoice issued. The Foreign Company don't have any presence in India. Bank is advising to use the purpose code S1023 - Technical Services for Form 15CA/CB. Since the work done was outside India and the Foreign Company don't have any establishment in India, does the remittance attract sec 195 for TDS deduction. Please advise.
Posted by
CA. VASUDEVAN P K
on
Feb 24, 2025
Filed Under
DIRECT TAXES
IMHO
1.FOR FOREIGN SERVICE PROVIDER CO,
INCOME DOES NOT ACCRUED OR ARISE IN INDIA
SO TDS LIABILITY IS NOT THERE ON INDIAN PAYER
2.HOWEVER GST RCM PAYMENT GETS TRIGGERED AND
MAY NEED TO BE TAKEN CARE
Posted by
VIPUL JHAVERI on
Feb 24, 2025
Answer ID :
85688
service wholly outside India...so no TDS
Posted by
SIVADAS CHETTOOR on
Feb 24, 2025