Tds

This query is : Open

Hita Desai (Querist)
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25 June 2013 Hello,

One of my client has taken technical service from foreign co(European). Payment is made directly to the co and service will be provided in India by the employee of the company. Questions are
1) At what rate TDS to be deducted?
2) What will be exchange rate while paying the TDS?
3) Is there any DTAA with Europe?

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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30 June 2013 25.75%

TT Buying rate of the date on which entry is booked or payment made, whicever is earlier.

Please check the country of residence of the foreign company.

Anuj
femaquery@gmail.com

Hita Desai

Hita Desai (Querist)
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01 July 2013 Hello Sir,

Thank you for the reply.

The company is in Italy. There is DTAA with the company. It mentioned the rate at 20% for Technical fees. so i will take the benefit of DTAA.

1)Do i need to take the closing exchange rate or the rate at the time of payment?

2) In which format i need to issue TDS certificate to the company, so that company can take credit in his country?

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