u/s 9

This query is : Resolved

vikas (Querist)
Follow

30 April 2010 we had paid the amount to patent attorny in out of india for consultation and filing of application form

please advice that u/s 9 tds is to be deductable or not b coz as per the amendment of sec 9 effect is rectraspective.

taxindiaconnect

taxindiaconnect (Expert)
Follow

30 April 2010 As per section 9 the income of a resident by way of fees for service rendered would be treated as technical fees and will be deemed to accrue and arise in India, the income will be taxable in India with in the meaning of deeming provision under section 9 of the Act as the explanation 2 to section 9 (1) (vii)

However As per section 90 of IT Act one can take the benefit of provision of Double taxation Avoidance Agreements ( DTAA) Currently India has DTAA’s with more then 75 Countries.

Since in your query it is not clear that what kind of services are being provided by non resident company and the country of resident of Non resident, in the absence of such information it is difficult to give any concrete advice, however from the language body of the query it seems that apparently TDS is applicable under IT Act 1961, if the party provides PAN @ 10.56%. Otherwise @ 20%