Don't Worry , Be Happy !
When a buyer requests an LC or a Letter of Credit from an Indian bank , the bank levies some service charges . As the nomenclature of payment is service charge, controversy arises whether the payment of service charges to banks for issuing letter of credit be liable to TDS . If really liable to...
After reading the post tax is deductible on payment to foreign branch of Indian banks , a premium subscriber has asked “whether payments to Indian branch of foreign banks is tax deductible”.Yes , the tax is deductible on any sum paid to such branches of foreign banks , because contrary to general belief, most of...
Section 194LC was introduced in the Income Tax Act vide Finance Act 2012 .The provision was introduced in order to facilitate the easy and cheap funds from abroad . The provision u/s 194LC provided for lower withholding tax at the rate of 5% on interest payments by Indian companies on borrowings made in foreign currency...
Section 195 of the Income Tax Act provides for withholding of tax on payment of any sum which is taxable under I.T.Act to a non resident. Banks will not remit unless the tax issue is solved. Therefore, when loan is borrowed from any foreign branch of bank in India and interest is either paid of...
That filing declaration u/s 15G by person below 60 years of age is well known method of preventing TDS on interest income. The question whether Trust can file a declaration in Form 15G is very good question . The answer to the question is a definite yes. I hope readers have already watched a video...
Want to claim excess tds refund ? Now , the deductor will have file a new form online for claiming the refund of tax deducted or deposited in excess as the CBDT has notified Rule 31A(3A) and 31A(5) for making a claim of refund of TDS. These Rules have been framed by CBDT as part...
Qualified Foreign Investor or QFI are allowed by government to invest in equity and other financial products.The FAQs about PAN to QFI was earlier posted . CBDT has also clarified vide FAQs clarifying withholding tax issues for QFI . Since the Qualified Depository Participants will be single point contact for QFIs , the deduction of tax at source from...
CBDT has issued Form and RFules u/s 201 to save deductors from being defaulter under Income Tax Act. Readers may recall that Finance Act 2012 had brought a good amendment for all deductors who were routinely subjected to provision u/s 201 of I.T. Act under which a deductor was treated as defaulter of non deduction...
The rules of TDS are certainly tedious and many time it creates confusion in minds of deductor or person who is helping deductor. One of the facebook fan of taxworry.com Sri Pramod Thakur asked last night about his confusion regarding AIN in following words I am doing eTDS work in Himachal Pradesh in govt department....
TDS on software purchase is a controversial issue which has been settled in favour of income tax department recently by Karnataka High Court by its decision in CIT (International Tax) vs Samsung Electronics 2011 16 taxmann.com 141 in which it was held that in software purchase , whatis bought is the right to use the...
There seems tough time ahead for tax payers as the CBDT has reduced the the amount of Rs 1 lakh to Rs 5000 for giving credit of TDS without verification . Thus problem of mismatch of TDS claim and actual TDS reflected as per 26AS statementwhich is actually given credit by the Income Tax department...
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