India Income Tax Made Simple

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Excerpt: One of our clients is in to the business of producing animation films for which it enters into contracts with non resident US Individuals in various capacities as writer, director, distributor co-producers etc. Whether the payments to such individuals be considered as Technical Service Fees for TDS. If yes, then what rate should be charged considering DTAA & IT Act. If no, then what procedure should be followed. Is there any provision for no deduction or lower deduction of tax. if yes, then wats the provision & the procedure. An early reply is sought. Amaresh, Bangalore You have asked the question…

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Excerpt: E- Payment of taxes were made mandatory for corporates & to those assessee to whom Section 44AB applies with effect from 01.04.2008. My question is that whether Payment of TDS will come under this or not and if TDS payments are to be made through E- Payment, then please the procedure involved. K.Muthuswamy, Chennai.The wordings given in the notification for making the payment of tax online mandatory, it is indeed not clear if the TDS is also made mandatory . However, the TDS is not a tax which is paid, but for deductor responsibility is to “Deposit” it. In my…

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Excerpt: We ship our goods by sea and pay Ocean freight to shipping lines in INR. Do we have to deduct TDS from shipping lines? (They refuse so accept it because they say they are exempt from Income Tax in India) .Hirendra Vikani, RajkotFirst of all , the statement of the shipowner that they are exempt from tax is not entirely correct. There is specific provision u/s 172 of the I T Act to assess “shipping business of non-residents”. However, there may be cases that income of foreign ship may not be taxable in India on account of Double Taxation Avoidance…