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Thread: India - Tax Deducted at Source

  1. #1
    Junior Member
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    Nov 2011
    Hillcrest, KZN
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    India - Tax Deducted at Source

    Hi, I have tried to find out more about this Tax from India but have just hit dead ends. The scenario, a South African company invoices a company in India, when they pay the invoice it is short and the difference we are told is TDS (Tax Deducted at Source) this is a type of Income Tax that goes to the Indian Govt that all businesses have to pay. My question is how do we claim this money back and shouldn't the company in India be paying this Tax? Not sure if anyone can help me with this?


  2. #2
    Gold Member
    Join Date
    Mar 2012
    Thanked 381 Times in 298 Posts
    It depends on what the service/goods being invoiced is. See very last line... (I think you might have been had) Good luck with this

    The income from the following sources is subjected to tax deduction at source
    Salary and all other positive incomes under any head on income( Section 192 )
    Interest on securities ( Section 193 )
    Interest other than interest on securities( Section 194A )
    Payments to contractors and sub-contractors( Section 194C )
    Winnings from Lottery or crossword puzzles( Section 194B )
    Winnings from horse races( Section 194BB )
    Insurance Commission covering all payments for procuring Insurance business( Section 194D )
    Any interest other than interest on securities payable to non-residents not being a company or to a foreign company( Section 195 )
    Payment to non-resident sportsman including athlete or sports association/institution.In case of non-resident sportsman,payments in respect of advertisements as well as articles on any game/sports in India in newspapers,magazines,etc. is included( Section 194E )
    Payment in respect of deposits under NSS[National Savings Scheme]( Section 194EE )
    Payment on account of repurchase of Units by Mutual Fund or UTI( Section 194F )
    Payment for Commission or brokerage( Section 194H )
    Payment of rent( Section 194I )
    Payment of fees for professional or technical services( Section 194J )
    Commission to Stockist,distributors,buyers and sellers of Lottery tickets including remuneration or prize on such tickets( Section 194G )
    Income from Units purchased in foreign currency or long-term capital gain arising from the transfer of such Units purchased in foreign currency ( Section196B )
    Payment of any income to non-residents in respect of interest or dividend on bonds and shares( Section 196C )etc.

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