Tax rate (Income Tax)

This query is : Resolved

Author : Anonymous

( Author )
04 June 2012

my client is getting a service from us based company/individual as technical service/professional service in the hotel industry. in this regard such professional is paid fee for the same. i feel the same is taxable in india and liable for TDS @10% u/s195 of the IT Act. Kindly give your valuable suggestions in this regard

Tushar Desai

( Expert )
04 June 2012

what you believe is correct. It is taxable under section 195 of the IT Act. But, the rate is 15%, Not 10%

CA CS Amit S. Kedia

( Expert )
04 June 2012

Is your client a non resident????

Author : Anonymous

( Author )
04 June 2012

my client in resident. the service provider is non resident and corporate will there be any variation in rates. besides i am not finding rate of 15% any where in the taxman ready reckoner. Kindly provide me with some inputs in this regard

CA CS Amit S. Kedia

( Expert )
04 June 2012

Section 195 is applicable for payment made to non resident and not for payment to resident.

Author : Anonymous

( Author )
05 June 2012

my client is resident. he has to remit the professional fee to non resident for technical services in hotel industry. Hence we have to deduct tax u.s195 for payments made to non resident and corporate assessee

CA CS Amit S. Kedia

( Expert )
05 June 2012

Does that us based company have permanent establishment in india?

CA CS Amit S. Kedia

( Expert )
05 June 2012

If it has PE in india then TDS is deductible @10% if agreement is made on or after 01/06/2005.

CA CS Amit S. Kedia

( Expert )
05 June 2012

TDS rate @15% is only for short term capital gains u/s 111A in hands of non resident and not for any other payment.

Author : Anonymous

( Author )
05 June 2012

he does not have PE in india. Will the rate differs for TDS