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Tds deduction

S.Ramakrishnan (Manager -Finance & Accounts) (62 Points)

26 October 2016

Dear Experts,

WE want to pay to a non resident at south korea an outsourcing design engineer fees. We kindly request you to inform us how tds has tobe deducted either 10.815% or 20.60%. They do not have any pan number in india. On notification no.53/2016 dt.24.06.2016 says that the email id., unique identification number , is available means tds can be deducted at normal rate or higher rate.

Please clarify.

Thanks & Regards,

S.Ramakrishnan

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7 Replies

Shivangi Garg (Practicing Chartered Accountant) (110 Points)
Replied 26 October 2016

Yes if all the details required as per above mentioned notification are available then TDS can be dedcuted at normal rate.

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Ruchi (CA) (1410 Points)
Replied 26 October 2016

Yes, if the specified documents and specified details are furnished, then higher rate of tax need not be paid. Hence ,you can deduct tax @ 10.815% .

FCA surbhi jain (FCA) (897 Points)
Replied 26 October 2016

Yes. If all the details are furnished as per notification no.53/2016.then no need to deduct higher rare of tds.

Thus rate of tds would be normal rate .

Rohit jain (Chartered Accountant) (26 Points)
Replied 27 October 2016

Deduct at normal rate since higher rate is to be deducted in the absence of required information.

S.Ramakrishnan (Manager -Finance & Accounts) (62 Points)
Replied 27 October 2016

Dear Sir,

We will deduct tds at 10.815% with out pan no. While filing quarterly returns under 27Q pan no is a must, without pan no the return cannot be filed. What to do in this case.