Tds

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Amar

Amar (Querist)

13 May 2013 WHAT IS RATE OF TDS IF RESIDENT OF INDIA (INDIVIDUAL) COMMISION PAID TO FOREIGN COMPANY?

Ashish Bansal

Ashish Bansal (Expert)

14 May 2013 The rate of tds will depend upon the country where the payment is to be made.

In case any DTAA entered by govt of India- then rates specified in that treaty will prevail;

Otherwise, rates applicable in india will be applicable i.e. if foreign company is having PAN in india then 10% otherwise 20%.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

14 May 2013 There should be no TDS provided the foreign company provides you with TRC and NO PE Certificate.

Anuj
femaquery@gmail.com

Ashish Bansal

Ashish Bansal (Expert)

29 September 2013 After withdrawal of old circular and notification, commission payable outside India will be deemed to accru and arise in India only irrespective of his PE status in India. Therefore income shall be taxable in India. The latest notification about TRC and PE is applicable only in case payee want to claim tax benefit in his country. This has nothing to do with income taxable in India.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

30 September 2013 There are host of judgements in recent past from Tribunals and High Courts which have ruled in favor of assessee.

The exemption from TDS is not emanating from circular but from the Act.

Even if the income is deemed to accrue or arise in India, only that portion which is attributable to India shall be taxable in India,which shall become NIL on absence of any PE in India.

Anuj
femaquery@gmail.com

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