K R Sivaraman (79 Points)
17 February 2009Hi,
We need to make payments to a consultant in Peru every month. This payment covers a fixed retainer fee + expenses.
Currently, there is no DTAA with peru.
Can anybody advise if the TDS rate should be 10.30% or should it be a difference %.
Thanks
Sivaraman
Jagdish Bhalia
(Practicing CA)
(453 Points)
Replied 17 February 2009
Aperson responsible for making to a non-corporate non resident assessee, of any interest or any ohter sum (not being salary) is required to deduct TDS at the time of payment or credit (whichever is earlier).
TDS rate 10%
Surcharge 10%
Education and higher education cess 3%
Rajesh Kumar
(Advocate- Tax)
(7806 Points)
Replied 19 March 2009
Where is the consultant based? In peru, it appears. The transaction is in the nature of import of services, no TDS is applicable; in fact service tax under reverse charge method should be paid.
CAclubindia
