25 February 2021
Dear Experts, We need to make a payment for Product listing charges to a Foreign service provider who is in Cambodia. At present, INDIA doesn't have a DTAA agreement with Cambodia. So For TDS deduction Purposes, Shall I consider a Rate Of 20% on the basis of PAN is not available Instead of IT rate or DTAA rate, Whichever Less, Due to DTAA does not exist? If the case, TDS deducted then such service provider does not get the tax credit Then is it Withholding Tax?
Is Tax Residency Certificate (TRC) helps to such service providers to avoid the TDS or withholding deductions & get the full money to the bank account.