TDS on Foreing payment
Kuldeep (Trainee ) (100 Points)
21 December 2010Kuldeep (Trainee ) (100 Points)
21 December 2010
Divya K S
(CA)
(289 Points)
Replied 21 December 2010
Firstly check out the DTAA with that country & check out the rate as per that DTAA for professional services. The rate as per Section 195 of Income Tax Act must be looked into. The rate whichever is beneficial to the assessee (whichever is less) must be adopted.
CA ASHISH GUPTA
(FCA, LL.B., MBA)
(390 Points)
Replied 21 December 2010
Please refer to explaination to section 9(2) and explaination 2 to section 9(1). In case of technical service the income deemed to accrue in India, irrespective of business conection. Plz chek DTAA with the relavant country. The rates for most of the countries are 10 or 15%.