Tds- non resident

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Anil Giria (Querist)
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26 December 2012 We have deducted tds on payment to non resident company (for trfr of share by non resdent to resident), I would like to know what complainces we have to do after deduction of tds of foreign company; like whether detail will be given o 26Q or else etc............

Regards

Anand

Anand (Expert)
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26 December 2012 For TDS deduction from Non-Resident please ensure the following is done
1. Deposit the tax u/s 195 within 7 days from the end of the month in which tax has been deducted

2. If remittance is to be made to the non-resident, obtain a CA Certificate in Form No. 15CB and upload the declaration on NSDL website using Form No. 15CA

3. The information about tax deduction will have to be included in the Quarterly ETDS return in Form No. 27Q

4. I hope that the rate of tax adopted is levied taking into account the provision of Section 206AA relating to PAN of deductee non-resident

5. In case the provisions of any Double Tax Avoidance Agreement have been applied, you will have to obtain a statement of tax residence from the tax authority of the country of non-resident along with a declaration to the effect that non-resident has no PE in India.

For more on taxes in India check out https:\\indiataxobserver.wordpress.com

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Anil Giria

Anil Giria (Querist)
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26 December 2012 I thought that form no 27Q is to filed for payment other than salary to a non resident not being a comp or any or a foreign company .

Also the foreign company is not having PAN so we have deducted TDS @ 20%. Is it ok...

Anand

Anand (Expert)
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26 December 2012 Yes you thought right. Since this is a transaction with a foreign company you will have to file Form 27Q

I will need the facts of the transaction to be able to opine on the appropriateness of rate of tax. Prima Facie, i am of the view that 40% should have been deducted.

Country of residence will also be of relevance to see if any DTAA benefit is available.

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