One of our clients need my advise regarding SI tax withholding is applicable in case of a Non Resident(British national) who stays in India for less than 90 days and provides Technical Consultancy within the meaning of the Indo- UK DTAA. Please suggest.. As fast as you can.
16 April 2012
And one more thing, Indo-UK DTAA says: (k) the furnishing of services including managerial services, other than those taxable under Article 13 (Royalties and fees for technical services), within a Contracting State by an enterprise through employees or other personnel, but only if: (i) activities of that nature continue within that State for a period or periods aggregating more than 90 days within any twelve-month period; or (ii) services are performed within that State for an enterprise within the meaning of paragraph 1 of Article 10 (Associated enterprises) and continue for a period or periods aggregating more than 30 days within any twelve-month period: Provided that for the purposes of this paragraph an enterprise shall be deemed to have a permanent establishment in a Contracting State and to carry on business through that permanent establishment if it provides services or facilities in connection with, or supplies plant and machinery on hire used or to be used in, the prospecting for, or extraction or production of, mineral oils in that State.
So, can we take resort on the fact that he didnt stay in India for more than 90days ?
16 April 2012
IF PAYMENT IS AS PER AGREEMENT APPROVED BY CG TDS AT 10 PERCENT PLUS SC AND CESS OTHERWISE AT 30 PC PLUS SC AND CESS IF RATE OF TAX AS PER INDO -UK DTAA IS LOWER THAN THAT RATE
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