Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
11 August 2011We are paying professional fees to a Foreign Company after deducting TDS @ higher rate i..e. 20%, and issuing them Form 16A.
In this reg. can foreign company get benefit if any of Form 16A ?
Also TDS deducting @ 20% is correct or not ( PAN NOT AVAILABLE)
Deepak Tapse
(Accounts Manager - Taxation)
(1771 Points)
Replied 11 August 2011
Foreign compnay does not have any branches in India
Mihir
(Wealth Manager)
(5293 Points)
Replied 11 August 2011
I think TDS rates for foreign company coming under DTAA are usually under 20%, so you can deduct 20% for PAN number not available.
Anshul
(.)
(375 Points)
Replied 11 August 2011
TDS arises only if the payment is chargeable to tax in India. So if work is done outside India and payment made to person directly outside India is not taxable and no TDS . In this case a certificate from CA in from 15CB and an online form 15CA will be filled.
But if payment is made in India or work has been done in India then it is taxable in India and TDS liability will arise.
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