tds on non residents

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nipun (Querist)
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21 October 2009 i have one query regarding DTAA which is as follows: -
whether payment by an indian company to its subsidiary company on account of hosting services is liable to tds in India. The subsidiary company is based at USA only and all the major decisions regarding day to day affairs are also taken thereat only.
please reply on yogeshmongaca@yahoo.com or canipunarora@gmail.com

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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21 October 2009 Income of non resident recipient including fees for technical services are covered under Sec 195.

Holding and subsidiary relation does not make any change in the applicability of Sec 195.

although I am not sure about "hosting service" but seems to be covered under Technical Services.

Rate of Tax would be 10.3% ( for payment below 1 Crore), otherwise 10.5575%