One of Our Clients is engaged in providing Consultancy Services to a Foreign Airlines Company. These Consultancy services covers Development and Maintenance services to Software used by the airlines. The Foreign Company Does not have any presence in India. Our Client has received Fixed Consultancy fee (in Foreign Currency) every month along with reimbursement of Rental Expenditure, purchase of Laptop and other Expenses.
Is there any TDS to be deducted by Foreign Company for payments made to Indian Consultants.
Whether The Consultant will be treated as agent and whether the Foreign Company is said to have PE in India .
Any FEMA implications on the Same.
Thanks
Debate on TDS applicability for consultancy fees from foreign airline without Indian presence; potential FEMA implications. A client provides consultancy services to a foreign airline, receiving a fixed monthly fee and expense reimbursements. The foreign company has no presence in India. The discussion revolves around whether Tax Deducted at Source (TDS) should be applied to these payments, if the consultant is considered an agent, and potential FEMA implications. One respondent believes TDS is required, while another argues there is no TDS liability as the foreign company is not an Indian assessee and transactions are conducted on a principal-to-principal basis, with no FEMA violations if payments are through regular banking channels. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
