Those who do not have a pan the TDS will be duducted at the prevailing rate for individual. This is the business adjustment that how Rs 1000 may be paid.
Taxes for paying Nigerian freelancer
We run a partnership firm. We are engaging couple of Nigerian freelancers for providing us with services (content and code writing). Those freelancers will be paid from our Corporate Account of Axis Bank using Trade Connect online. The software asks for TDS rate and TDS amount. My questions are : 1. What shall be rate and amount for content and code writing? They are freelancers, not permanent employees. 2. Assume we have to pay them INR 1000. Now at 10%, TDS is INR 100. Now they are not supposed to get INR 900. They want INR 1000 only. What is way so that they get what they are supposed to get, and whatever tax liabilities we have, we may fulfill that. 3. Any other taxes need to be paid by us for this fund transfers? 4. It also asks to submit 15 CA. We checked that this can be filled up from Income Tax portal, and then we may upload that to the bank. Are we missing something?
Asked 7 years ago in Taxation
6 Answers
Please elaborate.
Asked 7 years ago
Dear Sir,
Please ask your above question on www.taxfull.com which is sister concern of www;kaanoon.com, where is experts will be Chartered Accounts.
TDS deducted on the amount paid to such contract employees also won’t be deducted under Section 192 but would be deducted under other sections. In many cases, companies are deducting TDS on amount paid to such contract employees either under Section 194J or Section 194H or Section 194D. TDS in such cases is normally being deducted at a flat rate of 10%..
No it's correct but you need to follow the tax implications and deduct TDs and pay to government
The TDS norms for freelancers or small business owners stipulate that single transaction payments of over Rs 30,000 to professionals are subject to TDS at the rate of 10%. Even freelancers who make such payments are mandated by law to deduct tax at source and deposit the same with the government.
Freelancers will probably not like to hear this, but deducting tax at source on the payments you make is something that you need to be aware about.
Since most freelancers have a name for their business and open a current account in that name, they are treated as small business owners from a taxation perspective.
The freelancers can file tax returns
The TDS norms for freelancers or small business owners stipulate that single transaction payments of over Rs 30,000 to professionals are subject to TDS at the rate of 10%. Even freelancers who make such payments are mandated by law to deduct tax at source and deposit the same with the government.
However it is easy for freelancers to not only e-file their income tax but file their TDS returns as well.