04 January 2014
A company has deducted TDS u/s 194A @20.6% to the person who is non residence, who has also furnished PAN details to company. Is it required to deducted TDS @20.6% instead of 10%????
06 January 2014
The payer need to deduct tax at the rate beneficial to the payee i.e. Tax rate as per Income Tax Act or Tax rate as per the relevant Double Treaty Avoidance Agreement.
So here you need to mention the following details to get the correct advise.
1) Nature of Payment
2) Country of residence of non-resident
3) Is the non-resident having any PE in India
4) Has he submitted any Tax Residency certificate.
Do reply with the following details
or you can draft a detailed mail at my email id : mehul@raseshca.com
06 January 2014
Ideally if payment is to non resident, TDs needs to be deducted u/s 195. So that's one mistake. Secondly as said by Mr Mehul you also need to obtain Form 10F from the payee if you take treaty benefit.
CAclubindia
