payment to non resident techincian

This query is : Resolved

Satendra (Querist)
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07 July 2011 Dear sir,
My company want to pay INR 5,00,000 to technical people in Belgium. Kindly let me know how much TDS I should deduct and can that person claim any benefit in Belgium when I issue TDS certificate to him.

Arihanth Jain

Arihanth Jain (Expert)
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07 July 2011 FTS paid to a NR company shall be liable to tds @ 10%.(20% if NR does not have PAN in India)

However if the NR is an individual and the service provided falls under the list specified in Article 14-Independent Personal Services of the DTAA between India & Belgium, the transaction may not be liable to tds depending upon number of days stay or having a fixed base in India.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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12 July 2011 If TDS is being deducted under the provisions of Income Tax Act(always preferable as there are many clauses in DTAA which need to be fulfilled before we can take the benefit of reduced rates as per DTAA) , then the rate should be 10.51% (if PAN of foreign party is there)

Anuj
0-9810106211

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