With holding tax

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2014 Dear Experts,

We have Imported the Plant & Machinery from Germany. the seller provided the services for installation, commissioning the P&M in india. now he raised the invoice for Technical services provided by him.

my question is :-

1. whether TDS need to be deducted
2. If Yes, than @ what rate ( under Income Tax or DTAA with Germany)

Please note that Seller does not have IRC certificate and PAN in india.

Please advise.

Rupesh Jain

Rupesh Jain (Expert)
Follow

20 June 2014 u/s 195 you have to deduct the TDS @ 10% on payment to non resident . but you have to deduct the TDS @ 20% if the Germany company have not indian PAN.

Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2014 Thanks. but tax rate under DTAA is 10%

Upgrade to CAclubindia Pro. Subscribe Now!