Rahul K (CA Final) (113 Points)
30 August 2015
Z
(Tax Consultation (US and India))
(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?
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