manish kumar (C.A) (99 Points)
27 October 2012We are paying amount to outside india law practioner, one belongs to professional fee and other part is fee payments to trademark office of the coutry
Law practioner bill (UK)
A private limited, New delhi
Fee to trademark office $ 400
Other fee $ 250
TOTAL $ 650
For Law parctioners (UK)
Authorised
The UK client is not having PAN in india , how we will deduct tax on this invoice
Please help me
Lokesh Rao
(sr associate )
(45 Points)
Replied 27 October 2012
Hi,
1. As per DTTA agreement Between 2 contracting States no need to deduct TDS ( Refer Article 7) Provided no PE in india
2. DTTA agreement will overrule Income Tax Act i.e Which ever is More Benificial to the Indian Co. can be followed.
3. Obtain Tax Residency cerificate from NR : S. 90 (4) of the Act, as inserted by the Finance Act 2013 w.e.f 1.4.2012 provides that an assessee, not being a resident, to whom an agreement referred to in sub-section (1) of s. 90 applies, shall not be entitled to claim any relief under a Double Taxation Avoidance Agreement unless a certificate, containing such particulars as may be prescribed, of his being a resident in any country outside India
Extract of DTAA
ARTICLE 7 - Business profits - 1. The profits of an enterprise of a
ANJALI NEGI
(Chartered Accountant)
(1263 Points)
Replied 27 October 2012
It will attract the provisions of section 195 and TDS will be deducted @ 20% in case of non PAN assesse..
CAclubindia
