We need to pay large amount to a foreighn national as professional fees ( designing charges ) in foreign exchange ( we are exporter ) so
1.what is the TDS rate at which we should deduct
2.what is the category - code
3. if we pay after april 1, 2011 is there any benefit
4.for Italian national is there any duel tax treaty.
Tks and regards,
San
Dear Sanjay,
1) Rate of TDS = 10%
2) Category / Code under which TDS to be deducted is u/s 195.
3) TDS to be deducted on payment or credit whichever is earlier. So TDS to be paid on due date to avoid interest on late payment of TDS.
4) There is a DTAA between India and Italy.
Regards,
Devendra Kulkarni
if no PAN is provided then 20%
| Originally posted by : Sanjay | ||
 |
The TDS shall be at 10.5575% or 20%(without PAN as the case may be )
Professional Charges
As explained ealier no benifit if paying after 01.04.2011.
Yes, there is a India-Italy Treaty, but the wordings under Article 13 are similliar to sec. 9 of Indian Income Tac Act,1961 and the rate of TDS is 20% therein, so the Treaty is not useful for you while deducting TDS. |
 |
Anuj
0-9810106211
CAclubindia
