DTAA or Income Tax
This query is : Resolved
ATUL U ANAVEKAR
(Querist)
29 November 2010
In my case, my client is to make a payment to German Company as Fees for Techincal Service(FTS). The German Company do not possess a PAN in India.
As per the DTAA between India and Germany, the rate for tax deduction for FTS is 10%.
As per Income Tax, the rate for tax deduction without PAN is 20%.
Which rate is applicable to my case?. 10% or 20%.
Kindly guide
As per the DTAA between India and Germany, the rate for tax deduction for FTS is 10%.
As per Income Tax, the rate for tax deduction without PAN is 20%.
Which rate is applicable to my case?. 10% or 20%.
Kindly guide
CA.Madhusudan B.P.
(Expert)
29 November 2010
Generally DTAA or Income Tax rates which ever is beneficial to assessee may be deducted.
But the Provisions of Sec 206AA, appears to override the provisions of Income Tax Act 1961, including Sec 90/91 i,e. DTAA.
SO WHEN THE VENDOR IN GERMANY DO NOT HAVE PAN IN INDIA, THE APPLICABLE RATES WOULD BE 20%
But the Provisions of Sec 206AA, appears to override the provisions of Income Tax Act 1961, including Sec 90/91 i,e. DTAA.
SO WHEN THE VENDOR IN GERMANY DO NOT HAVE PAN IN INDIA, THE APPLICABLE RATES WOULD BE 20%
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