Tds on rent paid to non resident
This query is : Resolved
10 August 2012
Dear Sirs
Whether TDS is required to be deducted on rent paid to non resident ?
under what section & at what rate ?
Dear Sirs
Whether TDS is required to be deducted on rent paid to non resident ?
under what section & at what rate ?
10 August 2012
Yes, You have to deduct, U/s 194I @10% if total amount exceeds 1,80,000/- per annuam.
10 August 2012
if the non resident is not having PAN, then 20%
10 August 2012
There is no separate rate prescribed for TDS on rent paid to NRIs. Therefore, this would fall under the category of other income and be subject to a TDS of 30 per cent.
Again, just like in the case of capital gains on assets, the payer of the rent is responsible for deducting the tax at source. The same process of getting a TAN and issuing a TDS certificate applies in this case too
Again, just like in the case of capital gains on assets, the payer of the rent is responsible for deducting the tax at source. The same process of getting a TAN and issuing a TDS certificate applies in this case too
10 August 2012
@anand and amol.please read section 194i and answer it after reading facts carefully
regards
sripal jain
regards
sripal jain
10 August 2012
TDS to be deducted u/s 195 for non-residents at the rate prescribed in the finance act
In case of the lord lord is an individual then at slab rates in case of companies and firms at the rate of 30 percent
Further in case you have beneficial rates in any of tax treaties you may apply the same
In case of the lord lord is an individual then at slab rates in case of companies and firms at the rate of 30 percent
Further in case you have beneficial rates in any of tax treaties you may apply the same
10 August 2012
What about payment of commission to a Non Resident, who is not having PE in India? Does the Explanation 2 of Sec. 195 introduced in Finance Bill/Act 2012 makes a liability on a person to withhold tax before making payment of commission. Because Article 22 of many DTAA provides that the income would be taxable in the state of residence. Please suggest what is correct?
10 August 2012
Sec 195., rent liable for 30% (40% for Company) tds.
14 August 2012
@swasti.. in the absence of PE, the business profits are not taxable in India. Expalnation 2 to section 195 shall arise only in the case where the income is taxable.
Clause 1 of Article 22 says that it shall be taxed in the state of residence. however, if you look at clause 3, it says it shall be taxable in both states and it overrides clause 1.
there could be a position opted that once it is business profits, it cannot fit into other source of income ie it cannot fit into clause 22. business profits are not taxable in india because there is no PE
if you are not clear contact me at srinathapavaki@gmail.com
Clause 1 of Article 22 says that it shall be taxed in the state of residence. however, if you look at clause 3, it says it shall be taxable in both states and it overrides clause 1.
there could be a position opted that once it is business profits, it cannot fit into other source of income ie it cannot fit into clause 22. business profits are not taxable in india because there is no PE
if you are not clear contact me at srinathapavaki@gmail.com
16 August 2012
Mr. Srinath, thanks a lot but I am not able to send mail on the id provided by you. I had tried thrice, but everytime it is failing. I don't know the reason but could you give me another id?
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