Tds deduction in case of non resident company
This query is : Resolved
27 January 2015
My client is ISO 9000 certification company and issue certificates on behalf of non resident company( turkey) and pays per certificate fees to them. we at present deducting TDS as per applicable DTA i.e 15%.
Now department is asking 20% because there is no PAN for the non resident company.
please guide us.
Now department is asking 20% because there is no PAN for the non resident company.
please guide us.
27 January 2015
The Dept. is correct in asking for 20% TDS in view of no PAN. Obtain PAN for lower TDS of 15%.
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27 January 2015
If they have PAN here the income will be taxed in India and they will have to file return here. how DTA will come into picture.
28 January 2015
Unless the income will be taxed in India there is no need to file return despite having PAN.
Please see the link.
https://www.caclubindia.com/articles/requirement-of-pan-by-non-residents-tax-consequences-17195.asp#.VMiY69KUeZ0
Please see the link.
https://www.caclubindia.com/articles/requirement-of-pan-by-non-residents-tax-consequences-17195.asp#.VMiY69KUeZ0
28 January 2015
Yes, in my client's case the payment made to the non resident(turkey) company is covered by DTAA with turkey and rate for the same is 15% and we have deducted accordingly.
In this situation I dont think PAN is required and department is not justified in asking 5% diff of TDS.
In this situation I dont think PAN is required and department is not justified in asking 5% diff of TDS.
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