TDS deduction of Austria Company Payment

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dinesh upadhyay (Querist)
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21 March 2011 Dear Experts,

We have to pay 1,08,000 Euro to a Austria Company for providing us Professional/Technical Services.

At what percentage we have to deduct TDS % on whole payment.

Also tell me if a Subsidiary company of concerned Austria Company exist in India then at what percentage TDS will be deducted.

Dalton
Please Help !

CA. Krishna K Neeraj

CA. Krishna K Neeraj (Expert)
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22 March 2011
If the Austrian Company is having PAN(Permanent Account Number) in India, then TDS should be 10% else you need to deduct 20% on whole payment.

Here i assume that you need to pay 108000 euro as a professional fee as a part of contact with Austrian Company only.

dinesh upadhyay

dinesh upadhyay (Querist)
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02 April 2011 Hello Sir,

I have some more doubts with this query, one of our CA told that we are required to deduct 41.2 % tax if concerned Austrian company having office in India.

As per my Knowledge Austria having DTAA agreement with india Govt.

Please confirm me I am waiting for your reply.

Dinesh