At the outset permit me writing, your query incomplete.
I do not know-
1) whether the Dubai based company is a corporate entity or not. 2)Whether payment receivale from Indian organisation exceeding Rs. 1 crore per annum or not. 3) Type of service the Dubai based company is providing for.
Any way I am trying to give a broad answer
TDS rate against payment to non-resident u/s 195 of the Income Tax Act, 1961.
1) Long term capital gains u/s 115E Corporate (Company deductee) - NA Others - 10% 2) Other long term capital gains ( excluding u/s 10 (33), 10 (36) and 10 (38) Corporate (Company deductee)- 20% Others - 20%
3)Short term capital gains u/s 111A
Corporate (Company deductee) - 15% Others - 15%
4)Investment income from Foreign Exchange Assets orporate (Company deductee) - NA Others - 20%
5) Interest payable on moneys borrowed or debt incurred in Foreign Currency.
Corporate (Company deductee) - 20% Others - 20%
6) Royalty & Fees for technical services u/s. 115A - Agreement 1st June, 1997 to 31st May, 2005 Corporate (Company ddeductee)- 20% Others - 20% - Agreement on or after 1st June 2005
Corporate (Company deductee)- 10% Others - 10%
7)Winnings from Lotteries, Crossword Puzzles and Horse Races
Corporate (Company deductee) - 30% Others - 30%
8)Any Other Income
Corporate (Company deductee) - 40% Others - 30%
Notes: (1) Surcharge @2% on TDS amount is applicable in case of Corporate (Company deductee) only where payments exceed Rs. 1 crore. (2) Education cess @3% on total of TDS amount and surcharge(if any) is applicable in all cases.
01 May 2013
Thanks for your reply sir,.. Actually the company is a LLC and the contract amount will exceed Rs. 1 cr. Then what% should be deducted by the Deductor company...?
CAclubindia
