Kindly provide the rate in case of payment to foreign company
PAN is not available with company and payment is more than one crore
Whether rate will be 20% or 20% +SC+ed cess
9 Replies
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 30 December 2010
20% TDS
2.5% SC on TDS
2% EC
1% S&HSEC
sivadas chettoor
(CA)
(2644 Points)
Replied 30 December 2010
In the case of foriiegn companies the rates vary between 10% to 50% and hence you may please elaborate the nature of the payment. You may refer to part II of the First schedule to Finance Act 2010.
VIVEK BARANWAL
(CA.)
(310 Points)
Replied 30 December 2010
Type of service is Fee for tech service and agreement is made on 01/01/2010
Praveen thakur
(Exc. Accounts)
(22 Points)
Replied 30 December 2010
10.3%
TDS Rate = 10%
Edu. Cess= 2%
H. Edu.cess=1%
sankalp
(Tax Consultant ( Income Service Sale Tax ))
(107 Points)
Replied 30 December 2010
Tax 20 %
Sec & Higher Ed 3 %
Total.... 20.6%
Enjoy Happy New Year !!!!!!!!!!!!!!!1
Vivek Raju P
(Manager)
(614 Points)
Replied 30 December 2010
As the income is more than 1 crore surcharge will be applicable now we as the payee has not submitted PAN number and sec 206AA gets attracted, this over rides all the provisions of the act. hence 20 % + Schg + EC+SHEC will be applicable.
If there is a DTAA of India with that country in which the payee will is located then that rate can be used as long as it is less than 20% as even though 206AA is a non obstantate clause it cannot override the tax treaties and the benefit of the provisions of the act or the DTAA which ever is beneficial will be applicable.
CA Priya
(CS Final)
(1049 Points)
Replied 31 December 2010
I have a nice table to share with about TDS............ Which i downloaded few days back.............
Attached File : 52 budg tds.pdf downloaded: 935 times
sivadas chettoor
(CA)
(2644 Points)
Replied 01 January 2011
The TDS rate applicable to foriegn companies acn be found in Part II of Sch I of the Finanace Act and the rate for privete agreements is 40% falling under "any other income". Please note that the non-obsante provision in 206AA provides for deduction at higher of rates prescribed in the Act or 20% . Hence ur case requires 40% + cess + SC.
siva208 @ yahoo.com
sivadas chettoor
(CA)
(2644 Points)
Replied 01 January 2011
As suggested by the forum you may also look into DTS agreements which has got over riding effect over the provisions of Income Tax Act.
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