Sec 195

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Querist : Anonymous

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Querist : Anonymous (Querist)
19 October 2012 What is the withholding tax liability on paying supervision charges to a Non Resident company which does not have PE in India but is rendering services by sending their representatives to India to supervise?

19 October 2012 in that senario Withholding Tax would be charged @10%.

And if that company does not have PAN then Tax would be charged @20%.

For better understanding you can read Section 195(h)which deals this type of activity.

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Querist : Anonymous

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Querist : Anonymous (Querist)
20 October 2012 Thanks a lot Mr. Sunny

20 October 2012 It will be lower of Rate as per DTAA or Income tax act.... So better go through DTAA with other country...
Also if PAN is not there then withholding tax will be 20% as mentioned by Sunny...

04 December 2012 Here kindly check the following two possible scenarios:

1. Service PE can be formed depending on the no. of days stay of employees of the foreign Company.

2. Force of Attraction Clause can become applicable.

Kindly check the relevant DTAA for the same.

Anuj
femaquery@gmail.com


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