Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Tds on designing services given by a foriegn company in thai

ankita daga (student) (140 Points)

06 May 2013

Hey please solve my query. if an indian company takes services from a thailand company (without PAN No.)how much TDS has to be deducted after referring DTAA treaty

Reply
Follow
Share

4 Replies

Sonam Bidasaria (CA) (770 Points)
Replied 06 May 2013

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.

Upgrade to CAclubindia Pro. Subscribe Now!

CA Mukesh Choudhari (xyz) (153 Points)
Replied 06 May 2013

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 .

CA Shree Jain (Chartered Accountant) (1572 Points)
Replied 06 May 2013

Without PAN TDS @ 20%

CA. Anuj Gupta (Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA) (7024 Points)
Replied 20 May 2013

Circular No. 786 of 2000 has been withdrawn by Indian Govt.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

femaquery @ gmail.com