14 July 2011
Hi I would like to know what is the TDS rate for royalty income earned by a US Citizen from india. ..is there any ceiling...like if Royalty income is less than a prescribed limit, then no tds..anything like that ? Also, the US Citizen (the recepient of income) should file the income tax return ? can he get a PAN in india ?
Royalty (not being royalty of the nature referred to in (e) sub para) payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy
1.Where the agreement is made after March 31, 1961 but before April 1, 1976
COMPANY 50% OTHERS 30%
2.Where the agreement is made after March 31, 1976 but before June 1, 1997 : 30 % for all
3.Where the agreement is made after May 31, 1997 but before June 1, 1997: 20% for all
4.Where the agreement is made on or after June 1, 2005 : 10% for all
14 July 2011
Hi Ravikanth..One more doubt..is there any ceiling...like if Royalty income is less than a prescribed limit, then no tds..anything like that ? Also, the US Citizen (the recepient of income) should file the income tax return ? can he get a PAN in india ?
14 July 2011
Hi I would like to know what is the TDS rate for royalty income earned by a US Citizen from india. ..is there any ceiling...like if Royalty income is less than a prescribed limit, then no tds..anything like that ? Also, the US Citizen (the recepient of income) should file the income tax return ? can he get a PAN in india ?
19 July 2011
I agree with Mr.AnujGupta. Once the TDS is applicable for a said transaction and their is no PAN available for the non-resident then the provisions of Sec.206AA would be trigered and the withholding tax rate would be @ 20% or the rate determined u/s 195 or DTAA which ever is higher.
CAclubindia
