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TDS - Technical service

JAGANATHAN R ACMA, SAP(Fi-Co) (Manager Accounts and Finance) (915 Points)

31 May 2020

Hi.,

A indian company paying consulting fees to germany., Rs.100000/- ., Which section is applicable, what is the rate of percentage., The Germany is not having the PAN number., With pan number what is the percentage, and without pan number what is the percentage., and what are the legal procedure to finish this transaction.

Thanks in advance

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Akshay jain (17 Points)
Replied 31 May 2020

Sec-195,115A and 9.
Rate as per Income tax act1961, is 10.4%. check for applicability of surcharge also in your case.
Ask for TIN or unique number available with person in germany to whom payment is to be made.
Rate as per DTAA with germany is 10%.
File form 15 CA and 15 CB.
15 CB is to filled by a chartered accountant.
Ask for no PE declaration from germany person.
Be aware if germany people have PE in india then 44DA shall be applicable.