19 July 2011
Kindly confirm the applicable TDS rates for Non Resident Company in USA for commission payable against car rental services. The Non Resident Company has PAN for India. The TDS rates for commission cannot be found in DTAA.
19 July 2011
Such rental income should be business income of the NR. Hence it shall be taxable in India if the NR has PE in India. Tds shall apply only in such case.
20 July 2011
Unfortunately, it seems the question has not been explained well. The case is that the Customer is a registered company in US who is into Limo business. They have signed an agreement with us to do the Limo Services for their customers in India. The billing made to the customer is gross of commission. The customer transfers the money for the services rendered to us. The US company is entitled for commission for the services provided by us and this need to be remitted back to the customer in US. Being Commission, this requires TDS deduction. TDS rates for commission under DTAA are not available. The customer in USA has got a PAN issued in its name.
We would want information on the TDS rates that need to be deducted for this commission. Kindly also give the ref of DTAA for such deduction.
CAclubindia
