20% TDS is Applicable for NRI for non furnishing of PAN
This query is : Resolved
08 March 2011
An Indian company has placed an advertisement in foreign company magazine.
For this purpose the Indian company has to pay the amount.
The foreign company does not having any permanent establishment in India & even does not having PAN Card .
As it confirmed the same & confirmed that it is their Business Income as per Article 7 of DTAA.
So whether we have deduct the Tax 20 % on the basis of Sec 206AA or No tax as it is on the basis No permanent establishment.
Please confirm the same.
Sudeep
An Indian company has placed an advertisement in foreign company magazine.
For this purpose the Indian company has to pay the amount.
The foreign company does not having any permanent establishment in India & even does not having PAN Card .
As it confirmed the same & confirmed that it is their Business Income as per Article 7 of DTAA.
So whether we have deduct the Tax 20 % on the basis of Sec 206AA or No tax as it is on the basis No permanent establishment.
Please confirm the same.
Sudeep
08 March 2011
Tax is either to be deducted at 20% or if the party wants full payment, then gross up the invoice.
Message likes :
1 times
13 March 2011
Tax shall not be deductible if the foreign company doesn't have a PE in India.
Anuj
9810106211
Anuj
9810106211
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Clarification Required on Filing Form 141 for Joint Buyers
- HOUSING LOAN ISSUE
- Taxability of Partnership firm for FY 2025-26
- Portuguese Civil Code IT Return
- TODAY INCOME TAX SITE IS NOT WORKING ANY OFFICIAL EXTENSION
- Can we choose not to report losses in ITR3 if they cannot be carried forward?
- GST Rate for Catering Services
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
