Rate of tds on prof fee paid a non resident

Sadanand (ca) (50 Points)

24 August 2011  

Dear Members,

We are a construction engineering company (Pvt Ltd) and we are hiring \ retaining the services of a Architect (UK national) for next two years for a fixed monthly fee. He will based out India and will render routine architectural services for our various projects. During FY 2011-12 his stay in India will more that 182 days & this is his first visit to India.

Query is :

01.  What is the rate of TDS applicable for these kind of payments ? ( as per DTA A or Normal rates) 

02. Does these services come  fall under FTS ( fees for technical services)  as defined in Indo-UK DTAA ?

03. If these services are not FTS, how the UK national is taxed for FY 2011-12, whether as normal business income or U/s 44DA ?

04.  Would section 194J be applicable as UK national is going to stay for more than 182 days during FY 2011-12 ?

Regards

Sadanand.