20 January 2014
Dear sir 1- we are a company 2- we have to pay royalty to Thailand & no PAN 3- Remintance exceed one crore Query pls advise about percentage of TDS ON ROYALTY during the f.y 13-14 pls advise about surcharge & cess %
If there is no PAN , the rate of TDS shall be 25% as we cannot take the benefit of subsidized rate in DTAA if there is no PAN.
Also if the tax is borne by your company and not the payee, you need to gross up the tax ie if you make a payment of Rs. 100, TDS shall be (100/ 75 % ) * 25 % .
However you can take benefit in grossing up according to some judgments of Tribunal wherein grossing up can be done at the rate in force. But in that case, your Chartered Accountant has to draft the 15CA in a manner to justify the facts.
In case you need any further help, mail me the facts on mehul@raseshca.com
Regards, CA Mehul Shah ACA, Certificate in International Taxation
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