24 May 2010
A CITIZEN OF UNITED KINGDOM, WHO IS NOT A RESIDEN IN INDIA, BEING A ARTIST (MUSICIAN) COMES TO INDIA AND PERFORM A SHOW FOR THREE DAYS QUESION IS :
1. AT WHAT RATE WE SHOULD DEDUCT TAX ?
ARTICAL 18 OF INDO UK DTAA DOES NOT LAID DOWN ANY TAX RATE BUT MAKES IT CLEAR THAT IT IS TAXABLE IN SOURCE COUNTRY (I.E. INDIA)
24 May 2010
THANKS YOU ARE RIGHT. THE REASONS ARE HEREIN GIVEN BELOW:
SINCE NO RATE IS SPECIFIED UNDER DTAA,(ARTICLE 18 OF INDIA-UK DTAA) TAX IS DEDUCTED AT THE RATE PRESCRIBED UNDER THE SCHEDULE I PART II OF THE FINANCE ACT, 2010.
UNDER SECTION 195 (i) INCOME TAX @30.9 % IS PRESCRIBED WHILE MAKING PAYMENT TO A NON RESIDENT & NON CORPORATE ASSESEE (OTHER PERSON)
CAclubindia
