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TDS on NRI Payment

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Querist : Anonymous (Querist)

21 March 2010 A Payment of interest is required to be made towards delay in payment on import of purchase. Whether TDS u/s 195 of IT Act is applicable? The payee has no PE in India.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 March 2010 The Budget 2010 proposes to amend section 9 of the income tax Act,1961. As per that proposal whether or not the non-resident has a place of business in India income is deemed to accrue or arise to them in India and shall be included in the total income of the non-resident. The proposal has a retrospective effet also w.e.f 01/06/1976. So the person remitting the money has to necessarily consider section 195 and the DTA ,if any, existing with that country before remitting the money as and when the proposal becomes the law of the land.

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