Sec. 195 - TDS on foreign remittance
This query is : Resolved
08 December 2009
Dear colleagues,
Please throw some light on the doubt I am having regarding TDS u/s 195.
1-Will the remittance made towards INSURANCE PREMIUM FOR ASSSETS in India, to the insurers in US and UK be considered as income accruing/deemed to be accruing in India for them (they dont have a PE in India)?
2-Will such remittance attract TDS u/s 195? Or should they be considered u/s 194C as payment made to Foreing companies - TDS @ 2.175% (see WIRC reference manual 2009-10, TDS section)?
3-If u/s 195, then should the rate of TDS be 40%+Surcharge and Cess - the one for other incomes?
4-Same questions as mentioned in 1-3 for Rental payment remittances - movable assets being in India, but belonging to companies in US.
Awaiting suggestions and guidances.
Thanks.
Please throw some light on the doubt I am having regarding TDS u/s 195.
1-Will the remittance made towards INSURANCE PREMIUM FOR ASSSETS in India, to the insurers in US and UK be considered as income accruing/deemed to be accruing in India for them (they dont have a PE in India)?
2-Will such remittance attract TDS u/s 195? Or should they be considered u/s 194C as payment made to Foreing companies - TDS @ 2.175% (see WIRC reference manual 2009-10, TDS section)?
3-If u/s 195, then should the rate of TDS be 40%+Surcharge and Cess - the one for other incomes?
4-Same questions as mentioned in 1-3 for Rental payment remittances - movable assets being in India, but belonging to companies in US.
Awaiting suggestions and guidances.
Thanks.
14 March 2011
1.)As per Income Tax Act, YES, but you may escape through DTAA.
2.)No,the same shall be covered u/s 195.
3.)Kindly see Article 7 for insurance or reinsurance business.
4.) Taxable in India see Article 6 of respective DTAA.
Anuj
9810106211
2.)No,the same shall be covered u/s 195.
3.)Kindly see Article 7 for insurance or reinsurance business.
4.) Taxable in India see Article 6 of respective DTAA.
Anuj
9810106211
08 August 2023
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