nivedita (accounts executive) (43 Points)
12 September 2011if a company pay professional fee or consultancy fee like fees for sale promotion service to a foreign company and service is utilised in india. Does company need to deduct TDs, if yes what is TDS rate and under which section TDS should be deducted ?
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7014 Points)
Replied 12 September 2011
20% if the foreihn company doesn't have PAN otherwise 10.51%. Grossing up shall also be required if the tax is being born by Indian party.
Anuj
+91-9810106211
femaquery @ gmail.com
nivedita
(accounts executive)
(43 Points)
Replied 12 September 2011
Please check section 195(h) ,4th point in ready reckoner "where the agreement is made on or after June1,2005" TDS rate is 10.3% if payment doesn't exceed 1 crore.
SELVAKUMAR
(CA)
(26 Points)
Replied 05 February 2024
If the Agreement is not approved by the Government, then the TDS rate is 30% + cess + SC. Anyone may please confirm this
Yasaswi Gomes new
(Finance )
(4479 Points)
Replied 20 February 2024
TDS Rate Chart for FY 2023-24 (AY 2024-25) (cleartax.in)
not defined here. But its a professional service that 194j is not applicable cause this section is applicable only to resident payments.
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