Sec 195 and 115A

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anjali (Querist)
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13 May 2009 suppose there is a DTAA signed between a foreign co. n Indian concern n the foreign co gives technical assisstance to the indian concern for which royalty is paid by the indian concern so how would sec 195 n 115A apply???

taxindiaconnect

taxindiaconnect (Expert)
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13 May 2009 Section 115A provides the concessional rate on certain incomes of the non residents. For example the income of a non resident from royalty is taxed @ 10%
+ (SC and EC) under section 115A. while section 195 cast an obligation on the payer of the income to a non resident to deduct tax at source from the income. In the above expample since the income of the non resident is taxable at the prescribed rate u/s 115A, the payer has to deduct the tax at that rate u/s 195