Withholding tax rate if having pe in india
This query is : Resolved
09 May 2012
The reply in the below mentioned query would be appreciated :
the query is as under
A company registered in Russia and doing some geological survey work for a company registered in India.
The Indian company mentioning that if the Russian company is having PE in India than Withholding tax would be deducted at 40% and if there is no PE in India of Russian company than the rate of withholding tax would be 10%.
Is this possible???
Kindly give the relevant extracts of statues
the query is as under
A company registered in Russia and doing some geological survey work for a company registered in India.
The Indian company mentioning that if the Russian company is having PE in India than Withholding tax would be deducted at 40% and if there is no PE in India of Russian company than the rate of withholding tax would be 10%.
Is this possible???
Kindly give the relevant extracts of statues
10 May 2012
It s correct that if there is Pe rate would be 40%. Also such Pe needs to file their income tax return in India.
11 May 2012
Dear Nitesh
1) Any project office in india whose tenure exceeds 180 days is termed as PE & in that case one has to deduct withholding tax which is normally the maximum rate of tax i.e. 40%.
2) If it is not a PE the we have to deduct withholding tax @ 10% - which is known as FTS (Fee for technical services).
3) Further PE has to file the income tax return & get his accounts audited u/s 44AB (if applicable).
4) Do refer DTAA with Russia :
go to link :
http://law.incometaxindia.gov.in/DIT/File_opener.aspx?fn=http://law.incometaxindia.gov.in/Directtaxlaws/cbdt/dta/A1_Russia.htm
1) Any project office in india whose tenure exceeds 180 days is termed as PE & in that case one has to deduct withholding tax which is normally the maximum rate of tax i.e. 40%.
2) If it is not a PE the we have to deduct withholding tax @ 10% - which is known as FTS (Fee for technical services).
3) Further PE has to file the income tax return & get his accounts audited u/s 44AB (if applicable).
4) Do refer DTAA with Russia :
go to link :
http://law.incometaxindia.gov.in/DIT/File_opener.aspx?fn=http://law.incometaxindia.gov.in/Directtaxlaws/cbdt/dta/A1_Russia.htm
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Applicability
- Where to show the RCM on Rent paid to unregistered landlord
- Is Aadhar PAN linking required for opening bank account?
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- TDS NUMBER SURRENDER
- Gst Sales of FY 2023-24
- Offsetting interest income against derivative trading losses
- Application of 115BAC
- Legal heir raised refund , but refund issued to the closed account of deceased.
- RCM - commercial rent paid to URP under GST
- Whether still royalty
- 20% OF DEMAND PAYMENT IN APPEAL
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
