No pe declaration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 May 2013 ABC Ltd is availing regular business services from KK Inc. (a Foreign company) during the FY 2011-12 & 2012-13 and making payments regularly to KK Ltd without TDS deduction on the basis of NO PE certificate issued for these period for no deduction of TDS u/s 195.

However in Jan 2013, ABC Ltd received from KK Inc. a copy of letter issued by CIT dt July 2012 challenging KK Inc.'s PE status and issuing lower deduction of TDS @ 1% wef. April 2012.

Query -

1) Now whether No PE Certificate received from KK Inc. is sufficient for ABC Ltd to justify non deduction of TDS to avoid interest & penalty.
2) Does ABC Ltd need to investigate on PE status of KK Inc. for the period 2011-12 although it has a NO PE Certificate from KK Ltd.
3) Does ABC Ltd need to investigate on PE Status of other foreign co. which are in same business and running on same model as KK Inc. for their PE status though they have given NO PE Certificate to ABC Ltd.

Thanks & REgards

Querist : Anonymous

Querist : Anonymous (Querist)

08 May 2013 Any Comment?