18 March 2010
My clients a MNC Pvt.Ltd company contrlled by Co situated in France. It is being charged Central service charges(Common management expneses incurred)on yearly basis. As per DTAA and U/s 195 rate is 10%. My querry is that what is rate applicable on it.whether surcharge @ 2.5% on tds amount or not? it is very urgent.
19 March 2010
If the value is going to exceed Rs.1 Crore then only surcharge is applicable. If applicabe the rate is 2.5% on tds amount. You have to collect education cess of 3% also.
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