TDS on Consaltancy fees paid to non-resident for rendering service outside India, Income Tax

[PANKAJ GUPTA]

Dear Sir,

We are manufacturing company and want to engage a Person Mr. X as Consultant who is Indian Citizen and residing in USA on H4 Visa since last 1 year (Non-resident) for the export promotion in USA and develop overseas customer in USA. We will pay him a monthly Consultancy fees and also reimburse Conveyance bill on actual basis which incurred in USA for meet the overseas customer. He will provide all services in USA.He has Pan no. of India

Please confirm the TDS liability/ provisions in respect of payment of Consultancy fees and Conveyance Reimbursement to non- resident as per Income tax law and DTAA. Please also confirm whether this service will fall for Fees for Technical service (FTS) or not.

Regards

Pankaj Gupta

M-09212401641

Posts / Replies

[Ganeshan Kalyani]

In my view Tds is deductive.