Table of Contents
Is TDS applicable on software purchase?
No TDS u/s 194J on Payments for Software Purchase.
What is Sec 195 of Income Tax Act?
Section 195 of Income tax act, 1961 mandates the deduction of Income tax from payments made to Non Resident. The person making the remittance to non – resident needs to furnish an undertaking (in form 15CA) accompanied by a Chartered Accountants Certificate in Form 15CB.
What is Equalisation Levy?
Equalisation Levy is a direct tax, which is withheld at the time of payment by the service recipient. The two conditions to be met to be liable to equalisation levy: The payment should be made to a non-resident service provider; The annual payment made to one service provider exceeds Rs. 1,00,000 in one financial year.
How buyers can deduct TDS u/s 195?
The following are the ways to be followed to deduct TDS under Section 195: TAN (Tax Deduction Account Number): Buyer should first obtain TAN under section 203A of the Income Tax Act, 1961 before deducting TDS. TAN can be obtained by applying buy filling up the Form 49B. This form is also available online.
Who is liable to pay equalization levy?
The two conditions to be met to be liable to equalisation levy: The payment should be made to a non-resident service provider; The annual payment made to one service provider exceeds Rs. 1,00,000 in one financial year.
Who collects Equalisation Levy?
As per the expanded provisions, with effect from 01 April 2020, a non-resident e-commerce operator is liable to pay Equalization Levy at the rate of 2\% on the consideration received/receivable from e-commerce supply or services.
Is NRI liable to pay tax in India?
NRI or not, every individual must file a tax return if their income exceeds Rs 2,50,000. But note that NRIs are only taxed for income earned/collected in India.
What is Equalisation Levy 2020?
EL 2.0 was made effective on April 1, 2020. The new levy now includes a 2 per cent tax on gross revenues received by a non-resident “e-commerce operator” from the provision of ‘e-commerce supply or service’ to Indian residents or non-resident companies having a permanent establishment in India.
What does Equalisation mean?
Definitions of equalisation. the act of making equal or uniform. synonyms: equalization, leveling. types: balancing, reconciliation. getting two things to correspond.
What is an equalization levy?
The Equalisation Levy 2.0 requires foreign companies to obtain a permanent account number to file the return in India. Covered transactions: The Equalisation Levy 2.0 applies to selling both goods and services by a non-resident to Indian residents or non-resident companies with an Indian PE.
Can NRIs get salary in India?
An NRI, like any other individual taxpayer, must file his return of income in India if his gross total income received in India exceeds Rs 2.5 lakh for any given financial year.