Tds for 195
This query is : Resolved
09 February 2023
Sir
In IT concern , we pay to foreign company for server charges . need to dedcut tds ?
if yes 195sec ?
rate & section pls explain
In IT concern , we pay to foreign company for server charges . need to dedcut tds ?
if yes 195sec ?
rate & section pls explain
09 February 2023
Hi
Section 195 of the Income Tax Act, 1961 specifies the TDS provision in the case of an individual making a payment by way of interest or any other amount other than salary to an NRI or a foreign company.
TDS is deducted at either of the following rates, whichever is more beneficial to the payee:
Rates as per the Finance Act of the given year
Rates contained in the Double Taxation Avoidance Agreement (DTAA) between India and the country of residence of such non-resident
Note that the rates given under the Finance Act are to be increased by the applicable surcharge and education cess of 4%. However, surcharge and cess are not required to be added to the rates given under DTAA.
Thanks
Section 195 of the Income Tax Act, 1961 specifies the TDS provision in the case of an individual making a payment by way of interest or any other amount other than salary to an NRI or a foreign company.
TDS is deducted at either of the following rates, whichever is more beneficial to the payee:
Rates as per the Finance Act of the given year
Rates contained in the Double Taxation Avoidance Agreement (DTAA) between India and the country of residence of such non-resident
Note that the rates given under the Finance Act are to be increased by the applicable surcharge and education cess of 4%. However, surcharge and cess are not required to be added to the rates given under DTAA.
Thanks
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