Withholding tax on nri

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I want to know the process of determining Withholding tax on payments being made to NRI.
Replies (3)

Dear Nithin,

Before i get into the query raised, just would like to state that this topic is vast. And each individual topics has its own branches and roots. Below are a few points to get answers to inorder to arrive at a conclusion :

  •  "Nature of payment" : Whether payments on account of sale consideration (from sale of Property or any other Asset), professional charges or rental income or Fees for Technical Services or Dividends etc.
  • On the basis of understanding the nature of payment, the provisions and rates has to be taken from the Income Tax Act 1961 and DTAA with the respective country. Comaprison of the same we can suggest the rate which ever is beneficial to the Assesse.
  • The process and other anciliary matters are to be charted out based on this. 

Looking forward from hearing out on these points from your side, to arrive at an conclusion. 
Do let me know.

Regards,
Mathew
9446858251.

 

 

 

Hi Mathew! Thanks for your response. Herein below the key items of the transactions:

 

Country: Argentina

Nature of Payment:

1. Professional Fee (Through direct transfer in their bank account)

2. Award based on competition held. Payee is USA resident.

 

Looking for your advice.

Dear Nithin,

Thank you for the information. 
i have understood the payment is in nature of professional fees in the capacity of "Award based payments". And the beneficiary is a resident of USA
I few other queries which is as below:

  • You have mentioned Argentina. Is this the country to which the remitance is to be made to?. 
  • Was the mentioned Competition held in India?
  • If possible briefly let me know what kind of competition was this whether technical, sports or others(please specify). 

Referring shared information, it is evident that the payment is under the capacity of "Independant Personal Services". However this might change based on the additional information provided.

If you feel any of the information seeked is discrete, feel free to give me a ring. You might be able to arrive at a conclusion at a faster and convinient pace this way. 

Regards,
Mathew
9446858251


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