08 February 2012
My Client recieved an Professional Service/Technical Service from NRI. NRI belongs from Malaysia..& there is no any agreement between both the Parties.. Please tell me at what rate of TDS is deduct on payment to NRI & what is the effect of DTAA on Trasaction
11 February 2012
Article 13 of India Malaysia Treaty prescribes rate of 10%.
In case if it could be demonstrated as professional services it could be covered under article 14 & no tax needs to be deducted.
The term “professional services” includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, surgeons, lawyers, engineers, architects, dentists and accountants
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