TDS implications on Payment towards Hotel Bookings outside India.

[Vikash Patangi]

Dear Professionals,

I have a client who has recently entered into the business of providing tour & travel packages outside India. For this purpose, it has to make payments to hotels outside India booking rooms for guests, which requires foreign remittance outside India.

In order to make the foreign remittance, the client needs a certificate from a ca in form 15 CB. This form asks, whether any TDS is required to be deducted by my client on such payment or not. If yes, then at what rate will it be deducted.

Please reply.   

Regards,

CA. Vikash Patangi.

[cavss...@gmail.com]

We are also searching for same query , if anyone have solutions of this query please reply.

 

Regards

Sandeep Shekhawat

[Bishnu Gupta]

No TDS is required to be deducted as the payment is the business income of the recipient and he do not have PE in India and hence not liable to tax in India under section 9 of ITA.

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[Kalidas Ramaswami]

Before deciding the question whether withholding tax will lie or not ,we have to ascertain from the receipient whether he has any PE in India and also obtain a certificate regarding his tax residency.Only when he confirms that he does not have a PE in India and provides certificate of his tax residencency can the question be decided.
Regards
Kalidas 

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Date: Sun, 15 Feb 2015 14:36:24 +0530
Subject: Re: [CA RUNGTA PD] Re: TDS implications on Payment towards Hotel Bookings outside India.
From: gupta...@gmail.com
To: foru...@googlegroups.com

[Bishnu Gupta]

Certificate of Tax residency will be required only if the recipient is availing DTA benefit. In the instant case the basic question is the taxability of the receipt, which is not liable to tax in India in the absence of PE.

[manu2...@gmail.com]

Hi Vikash,

my client is also into same line of business and he now wants  form 15 cb for a remittance to be made outside India for a hotel.

Since there is no PE of the recipient there is no tax liability   .Hence what do we state in the particular sections of the form 15 cb..

1 )Nature of remittance as per agreement/document?

2) Taxability under the provisions of the Income-tax Act (without considering DTAA)?

3) The relevant section of the Act under which the remittance is covered?

warm regards,

CA.Manoj

9949998207

On Wednesday, February 12, 2014 at 5:00:13 PM UTC+5:30, CA Vikash Patangi wrote:

[tajend...@gmail.com]

Hiii Manoj

hru doing??

Did u get the answer of your query?? if yes than please mail me the same at my mail cstajen...@gmail.com

Thanks in Advance

CS Tajender 

+8076300335