Tds on royalty to foreign co if foreign co have pan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 March 2014 Dear All,

Please confirm what will be TDS rate on payment of royalty fees to UK based company but also registered in India and have PAN,

i was deducted @10% but received notice from TDS deptt of short deduction and showing in justification report TDS rate @ 25.75%

please guide.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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28 March 2014 u need to deduct tds @ 20% + cess =25.75 as per sec 195.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 March 2014 it seems you have deducted TDS under Article 13(2)(b). If that is so, then you are correct. However, it shall depend on how you reflected it in the notice. Incorrect disclosure in Form 27Q might have resulted in such a short-deduction notice.

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