Tds

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dhaval (Querist)
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24 April 2013 If a foreign co. provides some services to indian co. and as per DTA TDS% is 10% but foreign co. does not have PAN no. then what should be tds rate 20% or 10%. pls give some section reference.

CA Krunal

CA Krunal (Expert)
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24 April 2013 TDS rate would be 25% from 1st April 2013 if you do not have TRC.

As per sec.90(4) beneficial rates of DTAA cant be made applicable if TRC is not submitted.

If TRC is available but do not have PAN, then as per sec.206AA tds would be 20%.

At last if TRC & PAN you have then only 10% would be applicable.

dhaval

dhaval (Querist)
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24 April 2013 But while issuing form 15CB by chartered there is no requirement for PAN. I m auditor and i got 1 bill of foreign co. which dont have PAN but form 15CB issued by CA shows 0% TDS rate. How is it possible

CA Krunal

CA Krunal (Expert)
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24 April 2013 sec.206AA is applicable only if income is chargeable to tax. Hence if it is not chargeable then there is no need to apply 206AA.

dhaval

dhaval (Querist)
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25 April 2013 But how will i know that whether particular service is taxable or not

CA Krunal

CA Krunal (Expert)
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25 April 2013 It is basic question it will depend on scheme of act.

Generally in case of services if it does not fall in FTS (Fees for technical services) it will be not be taxable.

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