30 December 2007
Dear Sir/Madam, A company paid participation fees for Pakistan Book Fair amount is USD550.Now I want to ask whether TDS should be deducted by the company u/s 195 or under any other section?
Please reply soon and give the relevant provisions justifying your view.
31 December 2007
TDS IS DEDUCTIBLE UNDER SEC. 195 EITHER AT RATES SPECIFIED UNDER SEC 195 CLAUSE (i) WHICH ARE GIVEN BELOW ie 30.9%(if recipient is non resident and non-corp.assessee or 41.2%(if recipient is non domestic company) when the aggregate of payment subject to tax does not exceed INR 10,00,000 FOR IND.HUF,BOI,AOP OR RS 1 CRORE FOR FIRM,COOP.SOCIETY OR NON DOMESTIC COMPANY OR RATES SPECIFIED IN AVOIDANCE OF DOUBLE TAXATION(ADT) AGREEMENT . AS FAR AS PAKISTAN IS CONCERNED THERE IS ONLY A LIMITED ADT RELATING TO AIR TRAFFIC . SO YOU HAVE TO MAKE TDS AT ABOVE RATES AS APPLICABLE IN YOUR CASE. R.V.RAO
CAclubindia
