11 July 2013
An Indian Partnership firm rendering consultancy services to UAE based client has obtained consultancy on certain matters from UAE based local consultant and wants to make payment of their consultancy fees.Local consultant in UAE doesn't have either PE or PAN in India.IS TDS required to be deducted U/S 195 on consultancy fees(FTS)to be paid and at what rate?
11 July 2013
The Indian resident has obtained services of UAE based local consultant. The said services will be considered as FTS and be liable to tax as per Indian Income Tax Act ( In absence of article on FTS in India-UAE DTAA. FTS would be liable to tax u/s115A at the rate of 25% + surcharge + E.C.
CAclubindia
