Tds on foreign payments & issue of 15cb

This query is : Resolved

NARENDRA SHYAMLAL BHAWAT (Querist)
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27 May 2014 A indian company wants to pay professional fees to Foreign company having PAN in india.

The Indian company wants to deduct the TDS @10 + 2% surcharges + 3% Ed. Cess = 10.506% as per DTAA.

so in this my question is whether the TDS rate of 10.506% is correct or it should deduct @ 26.265% ( 25% + 2% + 3%)as per Income Tax Act.

and

If the tds rate of 10.506% is correct then whether I required to obtain TRC from the foreign company for issue of form 15CB or the copy of PAN card will be sufficient for it.

Nitin Bhuta

Nitin Bhuta (Expert)
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27 May 2014 If you are remitting the fees overseas then Form 15CB filing is mandatory but if you are paying within India then no need to file Form 15CB as underlying transaction is between two parties located in India.

Rupesh Jain

Rupesh Jain (Expert)
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27 May 2014 if you are sending foreign money then you can deduct tds u/s 195 @ 10% but if non resident not have indian PAN then you have to deduct tds @ 20% .

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