Tds

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Querist : Anonymous

Querist : Anonymous (Querist)

01 May 2013 What should be the TDS rate for a Dubai based Company who works in India on Contract Basis..?

CA Alexandar Gazi

CA Alexandar Gazi (Expert)
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01 May 2013 Hello,

At the outset permit me writing, your query incomplete.

I do not know-

1) whether the Dubai based company is a corporate entity or not.
2)Whether payment receivale from Indian organisation exceeding Rs. 1 crore per annum or not.
3) Type of service the Dubai based company is providing for.

Any way I am trying to give a broad answer

TDS rate against payment to non-resident u/s 195 of the Income Tax Act, 1961.

1) Long term capital gains u/s 115E
Corporate (Company deductee) - NA
Others - 10%
2) Other long term capital gains ( excluding u/s 10 (33), 10 (36) and 10 (38)
Corporate (Company deductee)- 20%
Others - 20%

3)Short term capital gains u/s 111A

Corporate (Company deductee) - 15%
Others - 15%

4)Investment income from Foreign Exchange Assets
orporate (Company deductee) - NA
Others - 20%

5) Interest payable on moneys borrowed or debt incurred in Foreign Currency.

Corporate (Company deductee) - 20%
Others - 20%

6) Royalty & Fees for technical services u/s. 115A
- Agreement 1st June, 1997 to 31st May, 2005
Corporate (Company ddeductee)- 20%
Others - 20%
- Agreement on or after 1st June 2005

Corporate (Company deductee)- 10%
Others - 10%

7)Winnings from Lotteries, Crossword Puzzles and Horse Races

Corporate (Company deductee) - 30%
Others - 30%

8)Any Other Income

Corporate (Company deductee) - 40%
Others - 30%

Notes: (1) Surcharge @2% on TDS amount is applicable in case of Corporate (Company deductee) only where payments exceed Rs. 1 crore.
(2) Education cess @3% on total of TDS amount and surcharge(if any) is applicable in all cases.

Thanks,

Alexandar Gazi

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Querist : Anonymous

Querist : Anonymous (Querist)

01 May 2013 Thanks for your reply sir,..
Actually the company is a LLC and the contract amount will exceed Rs. 1 cr. Then what% should be deducted by the Deductor company...?

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