A Pvt. Ltd. Co. in India has to make payment to Foreign Co.
Such Foreign co. are consultants to breakfast cereal Ind.
They are providing us consulting services.
Payment is to be made in GB Pounds.
Whether such payment is subject to tds and If yes, at what rate and what provisions to be complied with.
One bill is furnished inclusive of amount charged towards services rendered and reimbursement of expenses.
Indian Company Seeks Clarity on TDS Rate for Payments to Foreign Consultant in Cereal Industry; Service Tax Applicable A private limited company in India is seeking advice on whether payments made to a foreign consulting company, in GB Pounds, for services related to the breakfast cereal industry are subject to tax deduction at source (TDS) and at what rate. The bill includes charges for services and reimbursement of expenses. Responses indicate that both TDS and service tax apply, with TDS deducted at a specified rate and service tax paid on a reverse charge basis. Clarification is sought on the tax implications if separate bills are issued for professional fees and reimbursement of expenses. (AI Summary)
TaxTMI 
TaxTMI 
