31 May 2012
Dear All, We have deducted TDS @ 10.3% on import service & made a outward remittance. Service provider did not have any PAN. Now, we have to issue the certificate.
Please tell which form to issue them & how to get it.
31 May 2012
Ananth, both are same. When payment is to non resident it is termed as withholding tax.
Further since you have deducted under Indian tax laws sec 206AA shall be applicable and TDS @20% needs to be deducted. Hope you checked DTAA for beneficial provisions, if any.
31 May 2012
Dear Ananth, In case of Payments made outside India and the Payee does not have PAN ,then tax will be deducted as per section 206AA.This section has an overriding effect on any other provisions of Income Tax Act (even Sec 195 relating to TDS provisions to foreigners) As per provision of section 206AA the rate of TDS is @20% ,however no cess and surcharge will be imposed .
CAclubindia
