TDS on Royalty Earned by a US Citizen in India
This query is : Resolved
14 July 2011
Hi I would like to know what is the TDS rate for royalty income earned by a US Citizen from india.
..is there any ceiling...like if Royalty income is less than a prescribed limit, then no tds..anything like that ? Also, the US Citizen (the recepient of income) should file the income tax return ? can he get a PAN in india ?
Please help
..is there any ceiling...like if Royalty income is less than a prescribed limit, then no tds..anything like that ? Also, the US Citizen (the recepient of income) should file the income tax return ? can he get a PAN in india ?
Please help
14 July 2011
195(g)
Royalty (not being royalty of the nature referred to in (e) sub para) payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy
1.Where the agreement is made after March 31, 1961 but before April 1, 1976
COMPANY 50%
OTHERS 30%
2.Where the agreement is made after March 31, 1976 but before June 1, 1997 : 30 % for all
3.Where the agreement is made after May 31, 1997 but before June 1, 1997: 20% for all
4.Where the agreement is made on or after June 1, 2005 : 10% for all
Royalty (not being royalty of the nature referred to in (e) sub para) payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy
1.Where the agreement is made after March 31, 1961 but before April 1, 1976
COMPANY 50%
OTHERS 30%
2.Where the agreement is made after March 31, 1976 but before June 1, 1997 : 30 % for all
3.Where the agreement is made after May 31, 1997 but before June 1, 1997: 20% for all
4.Where the agreement is made on or after June 1, 2005 : 10% for all
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14 July 2011
Thanks Ravi. I believe the agreement is made after 01/06/2005. So the rate of TDS will be 10% if i am not wrong. PLease confirm.
14 July 2011
Hi Ravikanth..One more doubt..is there any ceiling...like if Royalty income is less than a prescribed limit, then no tds..anything like that ? Also, the US Citizen (the recepient of income) should file the income tax return ? can he get a PAN in india ?
14 July 2011
Hi I would like to know what is the TDS rate for royalty income earned by a US Citizen from india.
..is there any ceiling...like if Royalty income is less than a prescribed limit, then no tds..anything like that ? Also, the US Citizen (the recepient of income) should file the income tax return ? can he get a PAN in india ?
Please help
..is there any ceiling...like if Royalty income is less than a prescribed limit, then no tds..anything like that ? Also, the US Citizen (the recepient of income) should file the income tax return ? can he get a PAN in india ?
Please help
15 July 2011
There is no ceiling,
US citizen can file return in India, He can apply for PAN and will get it,
US citizen can file return in India, He can apply for PAN and will get it,
15 July 2011
Dear Sir, I am still confused...Can i discuss this with you ? can i have your number of you don't mind ?
17 July 2011
Kindly explain for what purpose the US Citizen is getting royalty in India.
Also the rate shall be 10.51% if the US Citizen has PAN otherwise 20%.
Anuj
+91-9810106211
Also the rate shall be 10.51% if the US Citizen has PAN otherwise 20%.
Anuj
+91-9810106211
19 July 2011
I agree with Mr.AnujGupta. Once the TDS is applicable for a said transaction and their is no PAN available for the non-resident then the provisions of Sec.206AA would be trigered and the withholding tax rate would be @ 20% or the rate determined u/s 195 or DTAA which ever is higher.
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