Tds rate for foreign italian national to be paid in Euro

TDS / TCS 1023 views 3 replies

Sanjay

Proprietor

35 Points Posted on 21 March 2011

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

Replies (3)

Devendra

Chartered Accountant

4780 Points Posted on 21 March 2011

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

U S Sharma

glidor@gmail.com

21068 Points Posted on 21 March 2011

if no PAN is provided then 20%

CA. Anuj Gupta

Practices in NRI Int.Tax FEMA TP FD

7024 Points Posted on 20 April 2011

Originally posted by : Sanjay

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

The TDS shall be at 10.5575% or 20%(without PAN as the case may be )

2.what is the category - code

Professional Charges

3. if we pay after april 1, 2011 is there any benefit

As explained ealier no benifit if paying after 01.04.2011.

4.for Italian national is there any duel tax treaty.

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.

Tks and regards,

San