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Royalty remittance to us after deducting tds u/s 195h

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This query is : Resolved

clinton (Querist)

26 November 2011 Please explain me the procedure for deducting TDS on royalty remittance to US.

Questions:
1. How is the TDS payment made
a. Online/Manual
b. Does it require a prior approval of IT Dept.

Thank you

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)

26 November 2011 The TDS on royalty payment will be deducted u/s. 194J of the Income Tax Act, 1961 @10% before remmitance of royalty. The assessee is required to seek permission of RBI under FEMA not as well as Income tax Department.TDS payment is deducted before making the payment or remmirance abroad and same will be submitted with the government online.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

13 December 2011 TDS shall be deducted u/s 195 and not 194J. The rate shall be 10.51% if te foreign Company has PAN otherwise 20%.

TDS should be transferred online.

No approval from anywhere is required however the same shall be subject to scruitny under Transfer pricing provisions.

Anuj
+91-9810106211
femaquery@gmail.com

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