Section 195
This query is : Resolved
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..
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..
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
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- TAN for Partnership
- Treatment of Pension ?annuity returns on PMVY
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Sales return eway bill
- Loan by Partnership Firm
- TDS related Query_Liquidated Damages
- STCG FOR GOLD ETFs
- Tax liability on income of freelancer
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
