Tds deduction % on technical service u/s 9(1)(vii) u/s 195

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Sushant Mahajan (Querist)

15 November 2013 If an Indian co. is paying fees for technical services u/s 9(1)vii) to a Non Resident co. in USA, then at what rate should TDS be deducted u/s 195?

Please reply.

Ajay Mishra

Ajay Mishra (Expert)

15 November 2013 go to the following link:

https://www.caclubindia.com/experts/tds-rate-under-section195-740785.asp#.UoXG-RenyVE

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Ajay Mishra

Ajay Mishra (Expert)

15 November 2013 For more details you can also go to the following link:

https://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=17270

SANTOSH SAGAR K

SANTOSH SAGAR K (Expert)

22 November 2013 Shri Ajay:

The first article which you have posted is of the older version on the subject. YOu would appreciate that the rate of TDS was enhanced from 10% to 25% in the last year.

Hence, the applicable rate is:
IT Act: 25%
India-US DTAA: 15%

Lower of the two being 15% is the applicable rate.

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Sushant Mahajan

Sushant Mahajan (Querist)

22 November 2013 Thank you Santosh Sir.

Sir, can you tell me any link or where in the Act, can I find detailed information on this issue?

SANTOSH SAGAR K

SANTOSH SAGAR K (Expert)

22 November 2013 Dear Sushant,

Please refer to Section 115A of the Act.

https://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=ITAC&schT=&csId=566fa2f7-4f5a-446f-8d22-98a6c1ae6592&rdb=sec&yr=303d6389-2d18-4432-bdbf-b74822b1a6df&sec=&sch=royalty&title=Taxmann - Direct Tax Laws

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Sushant Mahajan

Sushant Mahajan (Querist)

23 November 2013 Thanks a tonne sir.

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