I recently opened my single person LLC and just got my first contract to work on.
Part of the work will be outsourced to an offshore vendor (type Pvt. Limited similar to LLC in the US). The vendor company is non US resident/national.
It's IT based outsourcing with expense against services.
How will I account these payments as?
Tax Deductible Expense?
Withhold some tax for these payments?
Can I also include payment transfer fee as a business expense?
I've two opposing answers in here.