Applicability of TDS

[Pankaj Vora]

Indian partnership firm(X) for conducting education course/training for Indian customer company(C) gets services of foreign company from UK(F). For paying to foreign company(F) in UK (in GBP) does Indian Partnership Firm(C) have to deduct TDS on such amount. As Indian Customer Company (C) already deducts Tax (TDS) while paying to Indian Partnership Firm along with Service tax amount.

AI Summary

Indian Firm Must Deduct TDS Under Section 195 for Payments to UK Company, Subject to DTAA Regulations An Indian partnership firm conducting educational courses for an Indian customer company engages a UK-based foreign company for services. The query concerns whether the Indian firm must deduct Tax Deducted at Source (TDS) when paying the UK company in GBP. One response states there is no connection affecting TDS between the Indian customer and the foreign company. Another response clarifies that the transactions are separate, and TDS under section 195 would apply to payments made to the UK company, subject to Double Taxation Avoidance Agreement (DTAA) regulations.