TDS to non resident

[THYAGARAJAN KALYANASUNDARAM]

Dear experts,

One of my clients running a business in India as ISO lead auditor course and issuing certificate from the principle who is in abroad. The Indian company has to make payment to company in abroad as and when certificates are issued. Now my question is that, whether we need to deduct TDS on the payment made as per u/s 195 of income tax act?

We have to issue form 15CA and 15CB by today. Kindly send me a reply on urgent basis.

Since it's a import of service do we liable to pay GST under RCM basis?

Thanks in advance.

[DR.MARIAPPAN GOVINDARAJAN]

In my view

You are required to deduct tax at source;

you have to issue Form 15CA and 15CB.

Whether the course is conducted in India or abroad? Whether the services if rendered for the person in abroad?

[THYAGARAJAN KALYANASUNDARAM]

Dear Sir,

The services are providing in India only. But the Certificate will be issued by the agency in abroad.

Thanks in Advance.

[DR.MARIAPPAN GOVINDARAJAN]

Since payments are made to foreign country tax is liable to be deducted at source.

[KASTURI SETHI]

GST is applicable on import of service as per Schedule-1 (Serial No.4) read with Section 13(10 &(2) of IGST Act, 2017.It is import of service .

AI Summary

Tax Deduction at Source required on payments to foreign principal; Forms 15CA/15CB and reverse charge GST apply.
Payments by an Indian payer to a foreign principal for certificates issued abroad require deduction of tax at source and submission of Forms 15CA and 15CB prior to remittance; additionally, the transaction constitutes import of service and attracts GST liability on the recipient under the reverse charge mechanism.