27 July 2010
it would be as per section 195 ie 30% for companies and firms and slab rates for individual... if the DTAA specifies lesser rate tat would prevail
27 July 2010
As per section 206AA inserted by the Finance (No. 2) Act, 2009, all foreign parties (individuals, partnerships, companies or any other form of entity) receiving payments from Indian companies after 1 April 2010 need to provide their PAN to the Indian party remitting the payment. If the PAN is not provided to the Indian party, then the Indian party is required to deduct tax on the foreign payment at the highest of the following rates:
1. at the rate specified in the Income Tax Act, 1961 2. at the rates in force (rate specified in the Finance Act or under the double tax treaty) 3. at 20%
CAclubindia
