Section 195

24 May 2007
Dear all,

As per Section 195

The fees for technical services payable by the Govt. or an Indian Concern in pursuance made by the non-resident with the Govt. or the Indian Concern and where such agreement is with an Indian concern, the agreement is approved by the Central Govt. or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy-
Where the agreement is made on or after June 1, 2005. TDS rate is 10%.

Can anyone please tell me that what is the meaning of the line starting from where the agrrement is with indian concern........ in the above pharagraph?
Is every agreement with non-resident always approved by the central govt. or in accordance with the industerial policy?
Also what is the difference between TDS & Withholding Tax?

Jitender (Expert)
29 May 2007
Normally tds on non-resident is deducted as per the DTAA exists between the two countries. And if no rate is given in the DTAA, then Income tax rules are applicable.

PR Choudahry (Expert)
10 June 2007
tds is borne by the deductee whereas withholding tax is borne by the deductor

02 April 2013
Agree with PR Choudhary

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