Tax rate

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2012 my client is getting a service from us based company/individual as technical service/professional service in the hotel industry. in this regard such professional is paid fee for the same. i feel the same is taxable in india and liable for TDS @10% u/s195 of the IT Act. Kindly give your valuable suggestions in this regard

Tushar Desai

Tushar Desai (Expert)
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04 June 2012 what you believe is correct. It is taxable under section 195 of the IT Act. But, the rate is 15%, Not 10%

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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04 June 2012 Is your client a non resident????

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2012 my client in resident. the service provider is non resident and corporate will there be any variation in rates. besides i am not finding rate of 15% any where in the taxman ready reckoner. Kindly provide me with some inputs in this regard

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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04 June 2012 Section 195 is applicable for payment made to non resident and not for payment to resident.

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2012 my client is resident. he has to remit the professional fee to non resident for technical services in hotel industry. Hence we have to deduct tax u.s195 for payments made to non resident and corporate assessee

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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05 June 2012 Does that us based company have permanent establishment in india?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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05 June 2012 If it has PE in india then TDS is deductible @10% if agreement is made on or after 01/06/2005.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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05 June 2012 TDS rate @15% is only for short term capital gains u/s 111A in hands of non resident and not for any other payment.

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2012 he does not have PE in india. Will the rate differs for TDS