BHAGABAN JENA (MANAGER ACCOUNTS) (31 Points)
29 January 2015We import motherboards from UK. After the expiry of waranty period we have to repare the same from the same company. For this service we have to make payment in US $. Please advise whether we have to deduct TDS on it. If yes than how much % on it.
What is Tax residency certficate. What will affect on TDS if company will provide TRC.
Please explain.
Rajagopalakrishnan R
(PARTNER)
(1417 Points)
Replied 29 January 2015
Yes you have to deduct tax @ 10% or whatever rate that is specified in the DTAA with the country applcable. TRC is the certificate which will prove that the overseas company has no permanant establishment PE in India and therefore eligible for whatver concessions are agreed in the DTAA of that country where it is tax resident.
pradeep
(articles)
(22 Points)
Replied 29 January 2015
pradeep
(articles)
(22 Points)
Replied 29 January 2015
Praveen N Talreja
(Articled Assistant)
(42 Points)
Replied 30 January 2015
Jagdish sahu
(student)
(28 Points)
Replied 30 January 2015
Arif Ali
(Apt Co Advisory)
(1230 Points)
Replied 31 January 2015
| Originally posted by : pradeep | ||
 |
If dtaa not abblicable we will deduct tds.. But dtaa applicable which rate we will deduct.. Either dtaa rate or tds rate..?? |  |
if DTAA is applicable, then beneficial rate is applicable. means whichever is lower rate.
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