RAJESH ACCOUNTANT

[rajesh subramanian]

respected sir,

We are 100% EOU, developing a new product with a consultancy ( from Germany), the consideration was paid by our parent company in germany.

now, our parent company re-blling the above consultancy charges, buy making debit note on us.

if we are paying the debit note, whether we have to deduct TDS ? at what rate ?

regards

rajesh.s

AI Summary

TDS obligation on re-billed cross-border consultancy: whether payment of parent-issued debit note by a wholly export-oriented unit requires withholding. Whether a tax deduction at source obligation arises when a wholly export-oriented unit pays a debit note issued by its foreign parent that re-bills consultancy fees originally paid by the parent to a German consultant, and if so, the applicable withholding rate.