TDS on consultancy charges payment to non resident

This query is : Resolved

CA POOJA (Querist)
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29 May 2023 Are we liable to deduct any TDS u/s 195 on payment to foreign consultancy to lawyer for providing legal consultancy regarding case of anti dumping duty filed against us.

Lawyer does not have any permanent establishment nor does it provide any service in India.

If yes @ which rate and benefit of DTAA shall be available to Lawyer or not?

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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20 August 2023 Legal fees is deemed to accrue or arise in India, whether or not non-resident has place of business in india or has rendered services in India. (ii) the non-resident has rendered services in India. TDS rate under IT Act is 25% [as per section 115A(B)]

https://taxguru.in/income-tax/tds-legal-service-received-india.html#:~:text=Legal%20fees%20is%20deemed%20to,has%20rendered%20services%20in%20India.&text=(ii)%20the%20non%2Dresident,per%20section%20115A(B)%5D.