09 August 2011
We are having a consultant (Individual) in Sri Lanka who will advise us on market activities, promotions etc.., for our current & future business in Sri Lanka. We have an agreement with him as a consultant based for one year. What is the With holding tax rate at which we have to deduct TDS while making payment to the consultant. (For info, we do not have any establishment in Sri Lanka currently) Regards Kumar
10 August 2011
Since India Srilanka DTAA doesn't have a FTS Clause hence the same shall be treated as business income not chargeable to tax in India if the Individual doesn't have PE in India.