Tds on designing services given by a foriegn company in thai

If the PAN is not provided by the Thailand Company, then the Indian Company had to deduct tax at the rate of 20% or the tax rate mentioned in the treaty whichever is higher. 

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 (Circular 786, dt 7 Feb 2000 ) . In this case a certificate from CA in from 15CB and an online form 15 CA 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 .

Without PAN TDS @ 20%

Circular No. 786 of 2000 has been withdrawn by Indian Govt. in 2009 ,however TDS shall not be applicable for Thai Payment if it is able to provide a valid TRC and NO PE Certificate.

 

 

Anuj

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