Tds on non resident
This query is : Resolved
Deepak Khanna
(Querist)
02 January 2012
An Indian Pvt Ltd company has availed legal services from a non resident company based out of singapore which neither has a branch in India nor Permanent establishment in India . Is the Indian pvt company required to deduct tax if yes than at what rate
C.A.laxmikant Saini
(Expert)
03 January 2012
As per the section 9 of Income tax act 1961,all payments made to a nonresident outside for rendering of professional service shall be taxable in India regardless of the fact that whether the services have been rendered in India or not or where the non resident have PE in india or not.
So in your case the indian company need to deduct tax u/s 195 of income tax act.however the asessee can take benefit of DTAA with singpore and according to deduct TDS @ 10% ( general reduced rate for technical fee for excat rate may refer to DTAA eith Singapore) or 20 % in case of non availabilty of PAN.
C.A Laxmikant Saini
So in your case the indian company need to deduct tax u/s 195 of income tax act.however the asessee can take benefit of DTAA with singpore and according to deduct TDS @ 10% ( general reduced rate for technical fee for excat rate may refer to DTAA eith Singapore) or 20 % in case of non availabilty of PAN.
C.A Laxmikant Saini
Deepak Khanna
(Querist)
03 January 2012
Thanks Mr saini
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