Tds


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Querist : Anonymous

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Querist : Anonymous (Querist)
29 April 2015 I have to pay the Salary to a US Citizen Employee. By what rate, i should charge TDS on his salary

Pls reply as soon as possible

01 May 2015 30% plus education cess of 2% plus Secondary and Higher Education Cess of 2%

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Querist : Anonymous

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Querist : Anonymous (Querist)
02 May 2015 Thanx a lot Sir. Why should I charge 30%? is it flat rate?

and what about, if there Double Taxation Avoidance Agreement (DTAA) between US and India. Than by what rate, i should charge TDS

02 May 2015 Please mention the residential status of the employee.
.
Like other employees, take a declaration of income of his global income as well as deductions allowable, from the employee and compute his Indian Income Tax liability. By averaging out it deduct monthly TDS.
.

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Querist : Anonymous

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Querist : Anonymous (Querist)
06 May 2015 Thanks Paras Sir.but if there is Double Taxation Avoidance Agreement between the India and US.

The employee is US Citizen

06 May 2015 DTAA is prima facie applicable to the assessee.
However, TDS deductor is an indian citizen and resident in India, he has to comply with the tds provisions and not DTAA.


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