Tds on payment to service provider outside of india

[Nilesh Rathi]

Hello,

I have a service provider (IT and Marketing person) working for me outside of India (UK, US and Australia).

These service providers has no base in India or has no relation with India except that I hired them to work for my company in those countries.

Now when I have to make the payment, do I deduct any TDS? If yes, then how is this person going to claim TDS which we deduct in India because he/she has not base here in India?

And I am wondering if thats the case then what if my clients from US, UK and other foreign countries start deducting TDS in their country before sending the payment to me then how would I claim that?

Any help is much appreciated. Many Thanks

Hello, I have a service provider (IT and Marketing person) working for me outside of India (UK, US and Australia). These service providers has no base in India or has no relation with India except that I hired them to work for my company in those countries. Now when I have to make the payment, do I deduct any TDS? If yes, then how is this person going to claim TDS which we deduct in India because he/she has not base here in India? And I am wondering if thats the case then what if my clients from US, UK and other foreign countries start deducting TDS in their country before sending the payment to me then how would I claim that? Any help is much appreciated. Many Thanks.

Read more at: http://www.caclubindia.com/forum/tds-on-payment-to-service-provider-outside-of-india-348283.asp

Hello, I have a service provider (IT and Marketing person) working for me outside of India (UK, US and Australia). These service providers has no base in India or has no relation with India except that I hired them to work for my company in those countries. Now when I have to make the payment, do I deduct any TDS? If yes, then how is this person going to claim TDS which we deduct in India because he/she has not base here in India? And I am wondering if thats the case then what if my clients from US, UK and other foreign countries start deducting TDS in their country before sending the payment to me then how would I claim that? Any help is much appreciated. Many Thanks.

Read more at: http://www.caclubindia.com/forum/tds-on-payment-to-service-provider-outside-of-india-348283.asp

Hello, I have a service provider (IT and Marketing person) working for me outside of India (UK, US and Australia). These service providers has no base in India or has no relation with India except that I hired them to work for my company in those countries. Now when I have to make the payment, do I deduct any TDS? If yes, then how is this person going to claim TDS which we deduct in India because he/she has not base here in India? And I am wondering if thats the case then what if my clients from US, UK and other foreign countries start deducting TDS in their country before sending the payment to me then how would I claim that? Any help is much appreciated. Many Thanks.

Read more at: http://www.caclubindia.com/forum/tds-on-payment-to-service-provider-outside-of-india-348283.asp

Hello, I have a service provider (IT and Marketing person) working for me outside of India (UK, US and Australia). These service providers has no base in India or has no relation with India except that I hired them to work for my company in those countries. Now when I have to make the payment, do I deduct any TDS? If yes, then how is this person going to claim TDS which we deduct in India because he/she has not base here in India? And I am wondering if thats the case then what if my clients from US, UK and other foreign countries start deducting TDS in their country before sending the payment to me then how would I claim that? Any help is much appreciated. Many Thanks.

Read more at: http://www.caclubindia.com/forum/tds-on-payment-to-service-provider-outside-of-india-348283.asp

Hello, I have a service provider (IT and Marketing person) working for me outside of India (UK, US and Australia). These service providers has no base in India or has no relation with India except that I hired them to work for my company in those countries. Now when I have to make the payment, do I deduct any TDS? If yes, then how is this person going to claim TDS which we deduct in India because he/she has not base here in India? And I am wondering if thats the case then what if my clients from US, UK and other foreign countries start deducting TDS in their country before sending the payment to me then how would I claim that? Any help is much appreciated. Many Thanks.

Read more at: http://www.caclubindia.com/forum/tds-on-payment-to-service-provider-outside-of-india-348283.asp

AI Summary

Is TDS Applicable for Foreign Service Providers Without Indian Presence? Explore DTAA and Permanent Establishment Rules. A discussion on a forum addresses whether Tax Deducted at Source (TDS) should be applied when paying service providers based outside India, specifically in the UK, US, and Australia. The service providers have no presence in India, raising concerns about how they would claim TDS. One participant suggests TDS is applicable but could be exempt under the Double Taxation Avoidance Agreement (DTAA). Another contributor clarifies that no TDS is needed if the provider lacks a permanent establishment in India, as the income is taxable in their own country under DTAA provisions. Seeking advice from a Chartered Accountant is recommended.