We have deducted TDS @10% as per DTAA - as mentioned in 15CA form. Its for technical service. There is demand raised by TRACES that it should be 10% plus Cess = 10.40%
If TDS is deducted for payment made to Non resident company and if the rate is as per DTAA - then Cess @4% is applicable ? please guide. If no, then is there any specific option to be chosen for that while filing the return??
16 February 2023
Rates as per DTAA includes all surcharges, addition on account of education cess not sustainable. DTAA would prevail over the Indian Income Tax Act . OSRAM India Pvt. Ltd. Vs DCIT (ITAT Delhi) Income Tax (Appeal) No. 4052 of 2015 Also refer: https://indiankanoon.org/docfragment/12821902/?formInput=DTAA%20surcharge
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