26 August 2010
Dear Sir, We runs a college under Trust and we have tie up with a foreign university. now we have to pay them fee per month as technical service provided to us. Sir my query is about TDS applicability and if we have to deduct TDS then what will be rate of TDs? Please guide about the matter. Thanks, Ram Sharma p_ramprasad123@yahoo.co.in
27 August 2010
The relevant Double taxation avoidance agreements (DTAA) needs be looked into. The provisions of the Income tax or DTAA which ever is beneficial to assessee will prevail. For example if the TDS Under income tax is more than the rate specified under DTAA then rate specified under DTAA can be taken.
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