Opinion required u/s 195

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This query is : Resolved

Sharad Somani (Querist)

15 May 2014 We are going to refinance our aircraft
for which we need to pay due diligence fees of USD 6000
and subsequently once loan is approved interest & principal payment also
nothing will be made available from foll company..neither PAN nor TRC
pls suggest ..is TDS applicable
if yes what is the rate…
The finance company is in florida,USA.
AND PLZ PROVIDE UNDER WHICH SECTION OR DTAA IT IS TAXABLE FOR OUR REFERENCE.

Arihanth Jain

Arihanth Jain (Expert)

16 May 2014 Due diligence services shall be covered by Article 12 of DTAA and shall be exempt.

TRC is mandatory to avail DTAA benefits. Also it is advisable that foreign company gets a PAN in India.

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Sharad Somani

Sharad Somani (Querist)

16 May 2014 The PAN and TRC is not available from following company so what should be the rate of TDS and under which sec. it is taxable???

Arihanth Jain

Arihanth Jain (Expert)

17 May 2014 25% as under Sec 195.

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Sharad Somani

Sharad Somani (Querist)

01 July 2014 ok sir..
Thanks for your opinion

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