Payment to foreign consultant

Posted on March 27, 2014 by SRRF

Dear Friends,

I have a query on payment of professional fee to a foreign consultant for work done in India:
1. Can this payment be made?
2. What is the procedure for the payment in India?
3. What would be the tax implication?
4. Can the consultant claim the TDS in his/her native country?

Thanks and regards,

—
B V Soma Sastry

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2 Responses to Payment to foreign consultant

  1. Subhash Mittal says:
    April 2, 2014 at 7:30 am

    Dear Soma,

    Yes the payment can be made to a foreign consultant for fulfilling objectives of the Trust. TDS would need to be deducted under S. 195. Normally a chartered accountant certificate would be required in Form 15CA/15CB.

    Of course, claim for deduction can be made, the person would need to be consider, if there is a Double Taxation Treaty between India and the concerned country.

    rgds

  2. amit chhabra says:
    April 1, 2014 at 7:57 am

    Yes the payment can be made, you need to check the tax treaty between the countries to check the TDS rate applicability. The service tax will also be applicable through reverse mechanism.

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