Dear Sirs
I am R.Manish , working as a accountant in a Forwarding company(Logistics). Being as a forwarer we remit money to foreign customers and get inward from them.
I have a doubt in payment made to a NON Dtaa Country.
i want to know what are issues if the payment is made to a NON Dtaa Country.
i want to make a payment for the customer in Latvia, which is non dtaa..
Amt is USD 3200 around...
await for ur reply.
Manish
Accountant Seeks Guidance on Tax Implications for Payments to Latvia and Benin Under Sections 9 and 195 of IT Act. An accountant from a logistics company sought advice on making payments to countries without a Double Taxation Avoidance Agreement (DTAA), specifically Latvia and Benin. The concern was about the tax implications under Indian law for a payment of USD 3,200 to Latvia and USD 740 to Benin, intended for freight or delivery charges. A chartered accountant advised that without a DTAA, tax would be levied as applicable to non-residents, and the nature of the payment should be examined under Sections 9 and 195 of the Income Tax Act, 1961, to determine tax liability. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
