TDS

Querist :
Anonymous
(Querist) 03 May 2011
This query is : Resolved
My company has a project office in Bhutan. For project related works we engaged contractor both from Bhutan and India. we are deducting only Bhutan TDS as per RRCO guidelines and depositing in RRCO Account. Is it necessary to deduct Indian TDS in addition to Bhutan TDS also from Indian contractor? we are making payment in Bhutan currency only.
Sir, we are making payments in Bhutan.

Guest
(Expert) 04 May 2011
Whether making payments to contractors in Bhutan or in India?
soumitra basu
(Expert) 05 May 2011
You have to deduct both Bhutan TDS and Indian TDS from the contractors otherwise your deduction shall be disallowed under section 40A(ia)