Requirement to deduct TDS by Indian conapy - Impact of amendment in finance bill 2010

[madhavvan n]

when is tds required to be deducted by an indian company when payments are made to all non residents, does it require that the non resident should have a PE in India and the nature of payment should constitute income in hands of non resident. how to define income does any payment arising for services rendered in india by nonresident enough for deduction of tax. as finance bill 2010 contains a provision wherein the only criteria for the purpose of accrual of income as per sec 9 is that the services should have been utilised in india and the nonresident can render the service from any where in the world. does this amendment impact deduction of tax at source under Section 195 readers for your views

AI Summary

Tax deduction at source: services utilised in India may trigger withholding on payments to non-residents even if rendered abroad.
An Indian payer must withhold tax where payments to non-residents are taxable in India; the payer must assess taxability for each transaction. The Finance Bill amendment treats income as accruing in India if services are utilised in India even when rendered abroad, potentially expanding withholding obligations and requiring payers to evaluate service utilisation and deduct TDS accordingly.