If a company has to make a payment to a person who has been staying outside of India for over a year, in his bank account in India, then how much TDS needs to be deducted? Does the company need to maintain any documentation for this purpose? How will the payment be shown in the accounts books? Please advise.
From India, Kolkata
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1From India, Kolkata
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Who is this payee, an Indian employee working outside India for you, or a contractor working for you? What else? TDS also depends on the nature of payment and the relevant financial year it pertains to. Please provide some more details.
From India, Bangalore
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From India, Bangalore
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Payee is an Indian employee working outside India for me. This is for financial year 2018-19. Nature of payment is marketing services.
From India, Kolkata
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From India, Kolkata
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As the "Payee" is an Indian and an employee, and the remuneration is to be 'Salary' that is to be 'earned,' 'credited' in an Indian bank, it's subject to the Indian IT Act. Therefore, the TDS is at the rate applicable for anybody else ordinarily resident in India.
Now the question arises if he is to be considered an "NRI." I am still not clear about his NRI status; subject to this, the applicability undergoes changes.
Also, please read the attached material on TDS for NRI.
From India, Bangalore
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Now the question arises if he is to be considered an "NRI." I am still not clear about his NRI status; subject to this, the applicability undergoes changes.
Also, please read the attached material on TDS for NRI.
From India, Bangalore
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Responsibilitie s of person who is responsible for deduction of TDS on salary.docx
Amendment in Section 192A of the IT Act, 1961- Instructions for deduction of TDS on withdrawal f.pdf