Tds on sale of property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2016 if Indian pvt ltd ABC India has received contract from Myanmar company (it is contractual requirement that he has to use local Myanmmar resources and execute more than 50% of work in Myanmar)
accordingly ABC India opened office in Myanmar in the name of ABC Myanmar and used local manpower to execute the portion of the job.so ABC Myanmar is Associated company of ABC India.

now my query is this when indian company is making payment to associated copmany for his technical services,deducting TDS @10% u/s 195(as Tds rate reduced from 25 to 10% in Budget 2015)
but Myanmar tax Rate is 3.5% only

so Myanmar company wants from indian company to deduct tds 3.5% instead of 10%

any solution remedy is there

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 February 2016 The payment is to a non resident company for services rendered out side India so no TDS applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2016 sir,this is subcontract for Non resident Associated company
as per sec 195 company is liable to deduct Tds

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 February 2016 The work is carried out out side India not taxable in India. Hence TDS not applicable. May be Myanmar TDS of 3.5% applicable deduct and pay it to Myanmar Govt.

Querist : Anonymous

Querist : Anonymous (Querist)

25 February 2016 Please solve this query if
1 Abc India is holding 80% shares in ABC Myanmar
2 ABC Myanmar not filing any return in india.Myanmar company audit is done as per Myanmar Company act
3 No BOD Metting of Myanmar is helding in India

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 February 2016 The amount received should have been parked in Mynmar and after incurring all expenses only surplus is repatriated to India. In case of payment to ABC Mynmar deduct local TDS of Mynmar at 3.5% and remit it to Mynmar Govt.
This remittance is not liable for TDS in India.

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