TDS on the Fee payable to US trainer

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Adinarayana. T (Querist)
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20 October 2009 An Foreign (USA) citizen has been engaged by an Indian company, who is having PAN, to train its staff in India. What is the applicable rate of TDS to be deducted from the fee payable to him, Pl also mention whether surcharge and Education cess are also leviable, if the fee is covered under DTAA with USA.
Thanks in advance.
My email id: t.adinarayana@yahoo.com

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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21 October 2009 If you are paying in foreign currency then dtaa with usa will be applicable.

If you are paying in the name of the individual and if his stay period exceeds 182 days in toto then tds is deductiable at NIL%

if the agreeemet can fit into industrial policy and the bill is raised by foreign company then the tds will be 10% otherwise it is 40%.