Tax u/s 195 on payments to affiliates

This query is : Resolved

kartik_somu (Querist)
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02 March 2012 We have incurred few expenses on repairs and maintenance.

Does it attract TDS u/s 195.

We make payment to our affiliates.

Can we do any tax planning by drafting any contract as per DTAA such that the transaction does not attract TDS.

pls advice.

sudarshan

sudarshan (Expert)
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03 March 2012 Repairs and maint may be taxable for foreign enterprise us 9(1) as they have business connection in India as per ITax. If the foreign party has PE in India, it is also taxable under DTAA