Tds on import service

This query is : Resolved

GANGADHARAN (Querist)
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13 October 2012 Dear Sirs:

We have imported service and at the time of remittance we have deducted 10.3% TDS and remitted. foreign vendor do not have PAN. We get default for short remittance at NSDL website. If we asks foreign vendor for applying PAN, they says they have double taxation agreement with India and apply for PAN is not required.
Kindly advise your valuable reply to convince the foreign vendor to apply for PAN. We have already remitted TDS 10.3% under section 195. Kindly advise.

Can anybody reply to my query at the earliest.
Thanks in advance
G. Gangadharan

GN Patankar

GN Patankar (Expert)
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16 October 2012 Dear Sri G.dharan, In this case witholding tax is applicable & you are require to pay Tds @ 20% u/s 194J ,foreign remittance no PAN required,