SEC 195 OF THE IT ACT
This query is : Resolved
10 November 2007
IS THERE ANY LIABILITY TO PAY ANY INCOME TAX UNDER SEC.195 ON ACCOUNT OF THE PAYMENT TO A FOREIGN COMPANY AT GERMANY TOWARDS MAINTENANCE AND UPGRADATION FACILTIY OF THEIR SOFTWARE. THIS DOES NOT INVOLVE ANY SALE/PURCHASE. THIS IS JUST LIKE AN AMC SERVICE. IF SO WHAT IS RATE OF TAX. PL RESPOND
10 November 2007
PAYMENT OF OTHER SUM TO A NON DOMESTIC COMPANY UNDER SEC 195-RATE OF TAX- 41.2% IF PAYMENT SUBJECT TO TDS DOES NOT EXCEED RS. ONE CRORE .
IF IT EXCEEDS RS. ONE CRORE 42.23%
BUT THE ABOVE RATES OR RATES SPECIFIED UNDER AVOIDANCE OF DOUBLE TAXATION (ADT)AGREEMENT ENTERED BY OUR GOVT. WITH THAT COUNTRY WHICHEVER IS LOWER (UNDER SEC 90).
WITH GERMANY THERE IS SUCH ADT . RATE IS 10%
SO YOU ARE LIABLE TO DEDUCT TDS @ 10% PLUS SURCHARGE AND CESS.
R.V.RAO
IF IT EXCEEDS RS. ONE CRORE 42.23%
BUT THE ABOVE RATES OR RATES SPECIFIED UNDER AVOIDANCE OF DOUBLE TAXATION (ADT)AGREEMENT ENTERED BY OUR GOVT. WITH THAT COUNTRY WHICHEVER IS LOWER (UNDER SEC 90).
WITH GERMANY THERE IS SUCH ADT . RATE IS 10%
SO YOU ARE LIABLE TO DEDUCT TDS @ 10% PLUS SURCHARGE AND CESS.
R.V.RAO
10 November 2007
THANKS FOR THIS VITAL INFORMATION.I HAVE DOUBT ABOUT THE SURCHARGE IF IT IS 40% SURCHARGE APPLICABLE ONLY OLD RATE OF 2.5% STILL.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Opting our of sec 44AD
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Form 121 & TDS deduction
- Transporter Declaration form
- LC charges in relation to Asset purchased should be Capitalised ?
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Regarding TDS Applicability For Director Remuneration
- Value of property in capital gain
- Regarding appeal to GSTAT
- Multiple trade mark
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
