On 2.2.2025, Global Private Limited, buys product from Fintech Solutions, unit located in the International Financial Services Centre (IFSC) worth…

CA Final · Direct Tax Laws and International Taxation · RTP · January 2026
On 2.2.2025, Global Private Limited, buys product from Fintech Solutions, unit located in the International Financial Services Centre (IFSC) worth 63 Lakh. Turnover of Fintech Solutions and Global Private Limited for the F.Y. 2023-24 was - 11.5 crores and - 15.5 crores, respectively. From the above facts, which of the following options is true?
(A) Fintech Solutions is required to collect tax at source @0.1% on 13 lakhs.
(B) Fintech Solutions is not required to collect tax at source on sale to Global Private Limited, since tax is required to be deducted by Global Private Limited.
(C) Tax is required to be deducted at source by Global Private Limited, @0.1% on the amount exceeding 50 lakhs.
(D) Tax is required to be deducted at source by Global Private Limited, @0.1% on the entire amount of 63 lakhs.

Suggested Answer and Working Notes:

Correct Answer: Option (A)

Fintech Solutions is required to collect tax at source @0.1% on 13 lakhs.

Topics: Double Taxation Relief, Non-Resident Taxation

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