TDS payable to a UK based company

This query is : Resolved

Prinz (Querist)
Follow

11 May 2008 A uk based company has performed technical services in India to our Co., (an Indian company) considering DTTA can some one help me on hte following

1. should TDS be cut as per the act?

2.If answer to above is yes then at what rate and any circular reg tht is passed??

3.What will be the impact on DTTA???

awaiting for a professional answer

Thank you

Amit Sharma

Amit Sharma (Expert)
Follow

12 May 2008 1. TDS should be deducted u/s 195.

2. It should be deducted @ 10% exclusive of surcharge and educational cess, as you are falling under clause of Income Tax Act, hence deduct @ 10%.

3. The impact on DTAA under article fees for technical services will be @ 10% even though the rate is 15% as your company falls under Income Tax Act.

Hope your doubt is clear now.