TDS

This query is : Resolved

MARY MONICA (Querist)
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17 May 2011 To deduct TDS for a Non resient forwign citizen and to file the ETDS quarterly return , do I need to get PAN number from them.This is the only payment made. The non resident may refuse to take pan number. what shall I do. How to solve the problem

V.Rajan

V.Rajan (Expert)
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18 May 2011 In that case he has to pay 20%.

However please check what is the amount paid to him during the year. if it is less than the limit, TDS need not be deducted

Pragnesh

Pragnesh (Expert)
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18 May 2011 Deduct 20% TDS u/s.195 else ask to party apply for PAN card.

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RAHUL SARIA (CA, CS)

RAHUL SARIA (CA, CS) (Expert)
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18 May 2011 Rate would be 20% or applicable rate as per S.195, whichever is higher

CA. Krishna K Neeraj

CA. Krishna K Neeraj (Expert)
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19 May 2011 Since the foeign citizen do not have PAN, rate of tax will not be less than 20%. it may be higher than 20% if applicable rate as per S.195 is higher. The applicable section of Income Tax Act for TDS on payment to non residents is 195 which specifies no basic exemption limit for deduction of TAX.