Applicability of Withholding Tax on warehousing & logistics services taken from from foreign Company( U.K.)

[Pradeep Jain]

Dear Sir,

We are availing warehousing & logistics services from foreign Company based in U.K. and resident of U.K. as per TRC issued by HM Revenue & Customs – Business Tax Operations Unit , Glasgow but PAN number in India is not obtained by the said service provider. Further, we wish to submit that the said foreign Company does not have any permanent establishment and place of business and dependent agent in India.

We seek your opinion about the applicability of TDS on the payment made to said foreign Company in foreign currency.

Regards

Pradeep Jain

AI Summary

Foreign Company Without PAN Faces Higher TDS on Payments for Warehousing Services in India A query was raised regarding the applicability of withholding tax (TDS) on payments made to a UK-based company for warehousing and logistics services. The foreign company, which lacks a permanent establishment or dependent agent in India and has not obtained a PAN number, provides these services. The inquiry sought clarity on whether TDS should be applied to payments made in foreign currency. The response indicated that TDS is applicable at a higher rate when the service provider does not have a PAN number in India.