Certifcate u/s 195 of income tax

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Ravi Jagetiya(CA Final) (Querist)
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23 August 2012 If a Company Registered in United Kingdom is providing services to Indian Company (Carries business in india) through its permanent establishment situated in India. The Nature of Transaction between Payer and Payee is Contract (AMC). Plz let me know the How to Calculate the Rate of TDS in this Case.

Regards & Thanks
CA Ravi K Jagetiya

Arihanth Jain

Arihanth Jain (Expert)
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24 August 2012 Same shall be covered under FTS. Refer UK treaty, tds should be 15%.
(If no PAN then 20% as per S 206AA)

Ravi Jagetiya(CA Final)

Ravi Jagetiya(CA Final) (Querist)
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24 August 2012 Thanks Arihant,
Further to my query, the transaction involved is not in the nature of Fee for technical services, then what would be the rate of TDS ? Its in the nature of Business Profit.

Arihanth Jain

Arihanth Jain (Expert)
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25 August 2012 If its not FTS, then majority cases will be under Business profits only. Rate 40%

Ravi Jagetiya(CA Final)

Ravi Jagetiya(CA Final) (Querist)
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25 August 2012 As i told you its not FTS, What will be the rate of TDS ?

Ravi Jagetiya(CA Final)

Ravi Jagetiya(CA Final) (Querist)
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28 August 2012 Where the Rate of 40% Mentioned in DTAA. Can u please provide me the link for the same.

Thanks & Regards

Arihanth Jain

Arihanth Jain (Expert)
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28 August 2012 refer Sec 195