23 January 2014
TDS u/s 195 is deductible at 25% if No Pan / TRC available. IF TRC is available benefit of Double Taxation avoidance agreement can be availed.
Form 15CA is to be filled by the company and a CA certificate in prescribed Form 15CB is to be attached and provided to bank for remittance.
25 January 2014
There is a make Available Clause in Indo -Uk Treaty however as far as Designing is concerned, there are some Case Laws in favour of the assessee as follows :
(a) DDIT Vs Preroy A.G. 39 SOT 187 (Mum.)
(b) R R Donnelley India Outsource (P) Ltd. 335 ITR 122 (AAR- New Delhi.
(c) CIT Vs De Beers India Minerals (P.) Ltd. 346 ITR 467 (Kar.)
Some other Courts have taken a separate view. So more facts are needed to arrive at a beneficial conclusion.
In absence of the same , as rightly said by CA Arvind Varia, Tax is deductible at 25 % if no PAN/ TRC.
Also if tax is to be borne by the Payee, grossing up is to be done as per sec 195A
Form 15CA and 15CB has to be furnished online.
In case of any other query, you can brief me the facts at mehul@raseshca.com
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