Tax on Royalty to Foreign Company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2010 If I want to pay Royalty to a foreign company in USA, what the the implication in terms of :
1) Tax Rate
2) TDS Rate
3) Does Foreign Company needs to apply PAN
4) Does Foreign Comapany needs to file return in India

Shudhanshu Agrawal

Shudhanshu Agrawal (Expert)
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28 June 2010 Check out the applicability on Royalty u/s 9 for foreign company. If Section 9 is applicable then TDS need to be deducted and if TDS deduction is required then it will be deducted u/s 195. For this PAN no will be required to take the credit of TDS. If SEction 9 will be applicable then the income of the foreign company will be taxable in India and then they need to file ITR in India.