Section 195

This query is : Resolved

Iqbal Singh Grover (Querist)
Follow

12 March 2011 Hi..
My client is a foreign company (UK) which has been assigned a contract to build a hotel in India. The person making the payment to my client is a domestic company and wants to deduct TDS @ 40%.. Is there any way we can ask the resident co.for a lower deduction of tax.. I understand that we can use section 195(2) and 195(3). If I am not wrong, even the DTAA with UK is silent on this.. Please suggest me what to do.. Thanx..

K.Srini

K.Srini (Expert)
Follow

14 March 2011 In the case of foreign company engaged in business in india for a construction contract etc. one has to verify whehter the same could constue a project PE in India. In such case the rate of withholding tax has to be decided by refering to the AO u/s 195(2)or (3). Pl. note that DTAA with UK has the non-discrimination clause as well. Hence advice your client to approach the AO u/s 195(3) and not to accept for withholding tax @ 40%.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

SHYAM SUNDER GULATI

Shubham Jain

Aakash Kumar

Tia Blair

yadagiri

Subscribe Now

Section 195

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Article Assistant

GST CONSULTANT

Accountant

Manager- Finance and Compliance

GST CONSULTANCY

CA Final