Tds on foreign national residing in india

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Alen Barboza (Querist)
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20 March 2013 We have a professional who is residing in Mumbai, India (Rented Accomodation). He is working on Professional Basis for our Company. He is from JAPAN. Kindly Help me out with the TDS Rates & Provisions applicable to him. Also under which section Tax has to be deducted. Also i have requested him to obtain PAN under form 49AA (PAN Application for Foreign nationals residing in India)
Regards,
Alen

CA. PIYUSH GOEL

CA. PIYUSH GOEL (Expert)
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21 March 2013 dear..

TDS rates will be decided according to the residential status of him as per income tax ACT.

mere a foreigner does not mean it is non resident..

he is resident or non resident,it will be decided as per sec. 6 of income tax Act.

if he is found resident then TDS will be 10% u/s 194J

and if he is found non resident then TDS will be 30.90% u/s 195..

so dealt with the case accordingly..