Dear All,
Pls clarify my doubt.
While making any payment for service obtained from a non-resident shipping company, sec 194c will not be attracted.
Sec 195 says, must deduct TDS while making payment to non-resident shipping company.
Accordingly when he is assessed under 172, he is paying 7.5% tax on income.
My doubt is when we make payment such a NR foreign shipping company, do we need to deduct TDS.
If the NR Shipping company having branch in India and servicing on behalf of them, do we need to deduct TDS if the country goes into DTAA with the other country.
ie., if the company has NOC as per DTAA, while making freight for exports to that NR shipping company, do we need to deduct TDS. Does it over rules the sec 195.
Also clarify if such branch gets PAN number or service tax number , why dont it can be assessed as Indian company and accordingly TDS can be deducted.
Regards
Sriguru
Pls clarify my doubt.
While making any payment for service obtained from a non-resident shipping company, sec 194c will not be attracted.
Sec 195 says, must deduct TDS while making payment to non-resident shipping company.
Accordingly when he is assessed under 172, he is paying 7.5% tax on income.
My doubt is when we make payment such a NR foreign shipping company, do we need to deduct TDS.
If the NR Shipping company having branch in India and servicing on behalf of them, do we need to deduct TDS if the country goes into DTAA with the other country.
ie., if the company has NOC as per DTAA, while making freight for exports to that NR shipping company, do we need to deduct TDS. Does it over rules the sec 195.
Also clarify if such branch gets PAN number or service tax number , why dont it can be assessed as Indian company and accordingly TDS can be deducted.
Regards
Sriguru