With holding tax

This query is : Resolved

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.

CA Kedar Sakhardande

CA Kedar Sakhardande (Expert)
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20 June 2014 Hi

based on facts produced on the case

1) Since TRC is not availible DTAA rate cannot be applied
2) Since PAN No is not there Local rate with Pan is not applicable

So you have to deduct tax @ 20% (No Pan availible)

I belive you need to produce 15CA and 15CB at the time of making the payment