TaxTMI 
TaxTMI 
TaxTMI 
Tds on payment to service provider outside of india
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....ds on payment to service provider outside of india<br> Query (Issue) Started By: - Nilesh Rathi Dated:- 2-2-2016 Last Reply Date:- 4-2-2016 Service Tax<br>Got 6 Replies<br>Service Tax<br>Hello, I have a service provider (IT and Marketing person) working for me outside of India (UK, US and Australia). These service providers has no base in India or has no relation with India except that I hired them to work for my company in those countries. Now when I have to make the payment, do I deduct any TDS? If yes, then how is this person going to claim TDS which we deduct in India because he/she has not base here in India? And I am wondering if thats the case then what if my clients from US, UK and other foreign countries start deducting TDS in ....
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....their country before sending the payment to me then how would I claim that? Any help is much appreciated. Many Thanks Hello, I have a service provider (IT and Marketing person) working for me outside of India (UK, US and Australia). These service providers has no base in India or has no relation with India except that I hired them to work for my company in those countries. Now when I have to make the payment, do I deduct any TDS? If yes, then how is this person going to claim TDS which we deduct in India because he/she has not base here in India? And I am wondering if thats the case then what if my clients from US, UK and other foreign countries start deducting TDS in their country before sending the payment to me then how would I claim th....
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....at? Any help is much appreciated. Many Thanks. Read more at: http://www.caclubindia.com/forum/tds-on-payment-to-service-provider-outside-of-india-348283.aspHello, I have a service provider (IT and Marketing person) working for me outside of India (UK, US and Australia). These service providers has no base in India or has no relation with India except that I hired them to work for my company in those countries. Now when I have to make the payment, do I deduct any TDS? If yes, then how is this person going to claim TDS which we deduct in India because he/she has not base here in India? And I am wondering if thats the case then what if my clients from US, UK and other foreign countries start deducting TDS in their country before sending the p....
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....ayment to me then how would I claim that? Any help is much appreciated. Many Thanks. Read more at: http://www.caclubindia.com/forum/tds-on-payment-to-service-provider-outside-of-india-348283.aspHello, I have a service provider (IT and Marketing person) working for me outside of India (UK, US and Australia). These service providers has no base in India or has no relation with India except that I hired them to work for my company in those countries. Now when I have to make the payment, do I deduct any TDS? If yes, then how is this person going to claim TDS which we deduct in India because he/she has not base here in India? And I am wondering if thats the case then what if my clients from US, UK and other foreign countries start deducting TDS....
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.... in their country before sending the payment to me then how would I claim that? Any help is much appreciated. Many Thanks. Read more at: http://www.caclubindia.com/forum/tds-on-payment-to-service-provider-outside-of-india-348283.aspHello, I have a service provider (IT and Marketing person) working for me outside of India (UK, US and Australia). These service providers has no base in India or has no relation with India except that I hired them to work for my company in those countries. Now when I have to make the payment, do I deduct any TDS? If yes, then how is this person going to claim TDS which we deduct in India because he/she has not base here in India? And I am wondering if thats the case then what if my clients from US, UK and other....
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.... foreign countries start deducting TDS in their country before sending the payment to me then how would I claim that? Any help is much appreciated. Many Thanks. Read more at: http://www.caclubindia.com/forum/tds-on-payment-to-service-provider-outside-of-india-348283.aspHello, I have a service provider (IT and Marketing person) working for me outside of India (UK, US and Australia). These service providers has no base in India or has no relation with India except that I hired them to work for my company in those countries. Now when I have to make the payment, do I deduct any TDS? If yes, then how is this person going to claim TDS which we deduct in India because he/she has not base here in India? And I am wondering if thats the case then wh....
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....at if my clients from US, UK and other foreign countries start deducting TDS in their country before sending the payment to me then how would I claim that? Any help is much appreciated. Many Thanks. Read more at: http://www.caclubindia.com/forum/tds-on-payment-to-service-provider-outside-of-india-348283.asp Reply By Ganeshan Kalyani: The Reply: TDS is deductible on the transaction. For exemption or deduction at lower rate please refer DTAA. Reply By Nilesh Rathi: The Reply: Thanks for your message. Yes, under DTAA I shouldn't be deducting TDS on payment to a foreign service provider, so why do you say I should deduct? Because as I mentioned, how is that person going to claim TDS in India when they have nothing to do in India? Reply....
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.... By Ganeshan Kalyani: The Reply: I have not seen your case in particular as the Country with which you are transacting is not mentioned. However you have ascertained in that reference. Further for second para I would say that as per Income Tax law the income accrued in India is taxable in India. Reply By Nilesh Rathi: The Reply: Thanks again for your reply. I think you missed information which I mentioned above: 1. Country I am transacting with our UK, US and Phillipines 2. Income Tax Laws are applied on residents of India who are accruing in India. In my case, receiver is not accruing income in India. Source of payment is India, but money is going out of India. Hope this helps in understanding this case. Reply By Prakash Gupta: The R....
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....eply: No TDS will be applicable since the service provider has no permanent establishment in India. It will be cover by the business income article of DTAA of the respective country and accordingly will be taxable in that country only. regards, Pankaj Singh Reply By Ganeshan Kalyani: The Reply: Hope you have gone through the DTA with reference to the query under discussion. otherwise getting advise of a Chartered Accountant should be taken. The solution will be full proof. Thanks.<br> Discussion Forum - Knowledge Sharing ....