Tds deduction on payment to foreign company.

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amit goyal (Querist)
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22 November 2013 Sir, Our company has awarded a contract to L&T and Sojit Consortium for laying of railway tracks.Complete work is to be done by them at their own. In consortium L&T is resident and TDS deducted at 2% u/s 194C. But Sojit claims to be Non-Resident with permanent establishment and produced a Lower rate deduction certificate from A.O. to deduct tax at rate of .70%+cess etc.
Kindly advice me about the correct procedure to deduct TDS if Sojit is a company of JAPAN.

Amit Goyal
08950070977

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 November 2013 then in this case u need to confirm from ito about hsi certificate and then only deduct at .70% + cess etc.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 November 2013 Dear Amit

If the copy of the lower deduction certificate is made available to you, you can deduct taxes at lower rate on the basis of the same.

amit goyal

amit goyal (Querist)
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22 November 2013 yes, i do have a copy of letter.
Thanks for your prompt reply.

Amit Goyal

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 November 2013 you are welcome.

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