TDS on Professional Services by foreign Company

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2010 Helloooo friendz,

Goood Morning to all of you.

As usual one simple query for u guyzzz(expert)

What is the TDS % on Professional Services by Foreign Company.

What is the TDS % on Technical Services by Foreign Company.

Dalton
New Delhi.

srinath

srinath (Expert)

27 July 2010 it would be as per section 195 ie 30% for companies and firms and slab rates for individual... if the DTAA specifies lesser rate tat would prevail

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)

27 July 2010 As per section 206AA inserted by the Finance (No. 2) Act, 2009, all foreign parties (individuals, partnerships, companies or any other form of entity) receiving payments from Indian companies after 1 April 2010 need to provide their PAN to the Indian party remitting the payment. If the PAN is not provided to the Indian party, then the Indian party is required to deduct tax on the foreign payment at the highest of the following rates:

1. at the rate specified in the Income Tax Act, 1961
2. at the rates in force (rate specified in the Finance Act or under the double tax treaty)
3. at 20%

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