Tds rate

Deepak (Assistant Manager) (115 Points)

14 October 2013

What is the TDS rate for the payment to NRI U/s 195 for the FY 2013-14 ?

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4 Replies

CMA Ramesh Krishnan (Cost & Management Accountant) (71489 Points)
Replied 14 October 2013

It is based on the nature of service. subject to DTTA with the respective country. incase they are not having PAN then 20%

Deepak (Assistant Manager) (115 Points)
Replied 15 October 2013

It is the Director's fee, Director is NRI and not having PAN No.

Shikha (Student CA Final ) (37 Points)
Replied 15 October 2013

There are 2 possibilities here..

1. Director's fees for Technical Services provided by him

The TDS Rate Wud be 25% Plus (Surch. @ 10% If such Paymnt exceeds Rs.1 Crore if not then no Surch.) Plus 2% Edu.Cess. Plus 1% Sec. High.E.Cess...

Ultimately comes 28.325% (If payment exceeds Rs.1 Crore)

or 25.75% if payment doesnt exceed Rs.1 Crore.

2. Directors fees in no other nature like above mentioned:

Tds rate - 30% Plus (Surch. @ 10% If such Paymnt exceeds Rs.1 Crore if not then no Surch.) Plus 2% Edu.Cess. Plus 1% Sec. High.E.Cess...

Ultimately comes 33.99% (If payment exceeds Rs.1 Crore)

or 30.9% if payment doesnt exceed Rs.1 Crore.

PS - Experts Correct me If Im wrong....

Deepak (Assistant Manager) (115 Points)
Replied 12 December 2013

We deducted the TDS on Director's Fee @ 20% u/s 195, Director is NRI, has not PAN No.

Has Director need to take PAN and file the income tax return in India ?

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