Tds on payment to a foreign company

546 views 5 replies

Experts/Friends

My Company has to make a payment to a company in Singapore towards using its technical know how.

If the DTAA rate between India and Singapore is 10%, will the withholding tax rate be 10% or be 20% as it does not have a PAN in India.

Regards,

Replies (5)
Friends/Experts Looking forward to your opinion, views please. Thanks,

Sir, TDS should be deducted @ 20% u/s195.

As per my view it should be at 25% according to sec 115A..If the company provides Tax residency certificate then the company can obtain benifit of DTAA otherwise tds deduction should b at 25%

Thanks for your responses.

Now in the absence of PAN in India, regular Form 16A cannot be issued. The question is will the deductee be able to obtain credit of tax deduction at source @ 20% or 25% from its tax payable by way of filing of tax return in Singapore if the deductor Indian company gives a sort of declaration or certificate or statement about the deduction and deposit of tax in India.

Regards,

 

Sai sir is correct. TDS should be deduct u/s 195(f)/(g) @ 25% {increase by educ. cess and surcharge(if any)}.  Pardon me for earlier reply.

Sec.206AA over rides the DTAA.

 

Please check the following link:

CLICK HERE

Very usefull Article written by Deepak Agrawal Sir

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details