27 October 2010
Our co. has made provision for payment & TDS, to non resident on 31 March 2010. Paid the tax amount on 31st May 2010. Tax is deducted @ 10.5575% (Ref Sec 195)
But now as per Sec 206AA PAN is to be furnished otherwise Tax to be deducted @20% (w.e.f. 01/04/2010). In our case payee do not have PAN. Provision made on 31st March i.e. before 1st April.
Now the question is Whether TDS @ 10.5575% is correct or need to deduct @ 20%? Plz reply at the earliest.
02 November 2010
Dear Navin, Thanks for the reply. Now in case of form 15CB, what should be mentioned in coloumn 'relevant clause of DTAA', because payee co is belongs to Luxembourg & DTAA with the country is effective from 1st April 2010. Plz revert.
CAclubindia
