If a company has to make payment to a person who is staying out of India for over a year, in his bank account in India then how much TDS to be deducted? Does the company needs to maintain any documentation for this purpose? How will the payment be shown in accounts books? Please advise.
From India, Kolkata
1From India, Kolkata
Who is this payee, an Indian, employee working outside India for you or a contractor working for you and what else. TDS also depends on what is the nature of payment and which financial year it relates to. Provide some more details
From India, Bangalore
From India, Bangalore
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
From India, Kolkata
As the "Payee" is an Indian & an Employee and the Remuneration is to be 'Salary' and that is to be 'earned' & 'credited' in Indian Bank, it's subject to Indian IT Act and therefore the TDS is as at the rate applicable for anybody else, ordinarily resident in India.
Now the question arises if he is to be considered as "NRI" . I still not clear about his NRI status, subject to this the applicability undergo changes.
Also pl.read the attached material on TDS FOR NRI.
From India, Bangalore
Now the question arises if he is to be considered as "NRI" . I still not clear about his NRI status, subject to this the applicability undergo changes.
Also pl.read the attached material on TDS FOR NRI.
From India, Bangalore
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TDS circular.pdf
Format--new TDS rates.xls
BASICS OF TDS ON SALARY-1.doc