Tax rate if contract is not approved/notified by Govt

Vicky Nagpal (Articled Assitant) (36 Points)

08 June 2011  

Hi All

At what rate the TDS shall be deducted by an Indian Company?,in case of payment to a Non Resident u/s.195 for Architectural Designing Services

Recipient is from USA not having any permanent establishment in India and does not have any fixed place of business in India however Non Resident do have PAN Card as per Income Tax Act

Under Income Tax Act u/s.115A for contracts approved by central government Tax rate mentioned is 10%(SC+EC+SHEC), however if the above contract is not a notified contract/ not approved by the government then what rate is applicable?

As per DTAA with USA tax rate mentioned is 20%

Regards

Vicky