Section 195 along with dtaa uae

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 November 2011 Sir

I had to make payment to a foreign company in Dubai around $10000 u/s 194J.

Now as per DTAA and 194J rate of TDS is 10%.

But the company does not have PAN and permanent establishment in India.
So as per IT Act rate goes to 20%.

But as per IT Act more beneficial to assessee is 10% as per DTAA.

Now will the clause of 20% shall apply.

And secondly how will the TDS return will be filled since software is going with 20%.

Sir please give some of your valueable time for the query.

Regards

C.A. Ankit Bansal

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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02 November 2011 In case the Non Resident is not having PAN rate of TDS applicable will be 20%.

Please follow the link -

https://taxguru.in/income-tax/tds-on-non-resident-no-pan-whats-the-rate.html#axzz1cYHoQomQ

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2011 But DTAA rate is 10%

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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03 November 2011 If you have gone through the link given in the earlier reply, it has clarified by the CBDT that, those Non residents, who are not having PAN, will be subjected to 20% deduction rate.

In the present circumstances, It is better to apply for PAN by the Non Resident.

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