Applicability of sec 195 for raw material imports

This query is : Resolved

s.sriram gopal (Querist)
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27 June 2013 whether payments for import of Raw Material by an Indian Company from a supplier in u.k attracts the provisions of Section 195? Does the DTAA contain any clause exempting the withholding of tax on raw material payments?
The foreign supplier has no PE in India.
Does Sec195 read with Sec 9 has any implication on this?

Please suggest.

CA Navin Jain

CA Navin Jain (Expert)
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27 June 2013 PAYMENT AGAINST PURCHASE OF GOOD NOT LIABLE TO TDS, HENCE TDS RATE MENTIONED UNDER SEC 195 AND DTAA ARE NOT APPLICABLE.

However you need to obtain form 15 CB and file form 15 CA.