Rahul K (CA Final) (113 Points)
30 August 2015
Z
( )
(2965 Points)
Replied 30 August 2015
"This amendment will take effect from 1st April, 2016 and will, accordingly, apply in relation to the assessment year 2016-17 and subsequent assessment years"
(A.Y 16-17 means F.Y 15-16)
The existing provisions of section 115A of the Act provide that in case of a non-resident taxpayer, where the total income includes any income by way of Royalty and Fees for technical services (FTS) received by such non-resident from Government or an Indian concern after 31.03.1976, and which is not effectively connected with permanent establishment, if any, of the non-resident in India, tax shall be levied at the rate of 25% on the gross amount of such income. This rate of 25% was provided by Finance Act, 2013. In order to reduce the hardship faced by small entities due to high rate of tax of 25%, it is proposed to amend the Act to reduce the rate of tax provided under section 115A on royalty and FTS payments made to non-residents to 10%.
CA Vishal Mehta
(CA)
(123 Points)
Replied 30 June 2017
However if establishment has a Pe then this is not applicable right?
In case NR has pe then generally resident Indian company goes back to deducting at 40%.However sec 44da mentions on net basis.So how to arrive at net basis upfront?
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
