We are a provider of consulting services. As part of our work, we collaborate with specialists from outside India who participate in project with us and support us is our work with our clients. Such partners do not have any establishment or presence in India.

I want to know what TDS do we have to deduct when making payments to them? These payments are made in foreign currency to their accounts in their home countries.

Most importantly, given that they are providing services in India and do not have any establishment here, who is responsible for collection of service tax on their services to us, the provider or us?

And are these taxes then eligible for input tax credit?

Thanks

Saurabh

Saurabh:

Your questions seem to be in reference to the tax system in India.

This forum addresses tax questions under the United States Internal Revenue Code.