03 January 2013
Whether TDS is to be deducted for annual fees invoice raised by the non-resident based in USA would be dependent on the nature of services for which the fees are being charged. A brief description of the services along with the basic facts would help in providing you an opinion on the same. There is a DTAA between India and USA. The rate of tax to be deducted would depend on the nature of services rendered and its consequent classification under the various heads of income under the Income Tax Act and the relevant DTAA Request you to provide as much information as possible.