TDs

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Rupinder (Querist)
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21 April 2010 we are a ATC (Authorised training Center) of IATA registered in india . and we are making a ATC Annual Fees of US $ 2500 to IATA (international Air Transport Association,) which is registered in canada and non profit organisation.
so can anyone please tell me that weather TDS Dedution u/s 195 is Mandatory or not........

if yes what is rate of TDS......

Thanks in advance.....

VIKAS AGGARWAL

VIKAS AGGARWAL (Expert)
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21 April 2010 Dear Rupinder,

As the fees paid by you is for using the name of IATA and covered under royality.And as per India - Canada DTAA the tax rate would be 20% of gross amount assuming the payee does not have any permanent establisment in india.