DTAA

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This discussion clarifies Argentina's withholding tax for services provided by Indian companies. While a Double Taxation Avoidance Agreement (DTAA) exists between India and Argentina, foreign recipients not establishing a permanent establishment in Argentina are subject to a 35% withholding tax. This tax is applied to a presumptive net income percentage based on the payment type and can be adjusted against the recipient's overall tax liability in India.

BHUVANESH N

BHUVANESH N (Querist)

10 February 2020 Dear All,

We are providing services to a company in Argentina. There is only Tax information Exchange Agreement between India and Argentina.

What is the tax rate at which the should deduct withholding tax. Whether the same can be adjusted against our tax liability here.

Please share the details.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 February 2020 Foreign recipients not qualifying as a permanent establishment in Argentina are subject to withholding tax at source. The rate is 35% on the applicable presumptive net income percent, depending on the type of payment made (ie interest, fees, royalties, rentals, etc).
Yes the same can be adjusted on the tax payable on that income.

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BHUVANESH N

BHUVANESH N (Querist)

10 February 2020 Thanks for your reply.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 February 2020 Welcome..................

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