Tds rate for royalty/technical services
This query is : Resolved
20 June 2015
What is the TDS rate for importing technical services. And what is the rate if import company having PE/BC in India.
CMA MALHAR BEHERA
(Expert)
20 June 2015
At the rate 10%
As per provision of section 115 A(1) (b) of the Income Tax Act 1961 ,a foreign company includes any income by way of Royalty other then income referred in Sub Section 1 of Section 44AD of income tax act received from a Indian concern ,the income tax payable shall be calculated at the rate of 25 % of the royalty income wef 1-04-2013 .Section 44DA relates to foreign company carrying on business through a P.E .How ever ,the rate of tax will not exceed the rate mentioned in DTAA .
Therefore ,since your client is paying Royalty to a foreign company which is not having a P.E. ,your client is liable to deduct Tax At Source as per provision of Section 195 of the Income Tax Act .
As per provision of section 115 A(1) (b) of the Income Tax Act 1961 ,a foreign company includes any income by way of Royalty other then income referred in Sub Section 1 of Section 44AD of income tax act received from a Indian concern ,the income tax payable shall be calculated at the rate of 25 % of the royalty income wef 1-04-2013 .Section 44DA relates to foreign company carrying on business through a P.E .How ever ,the rate of tax will not exceed the rate mentioned in DTAA .
Therefore ,since your client is paying Royalty to a foreign company which is not having a P.E. ,your client is liable to deduct Tax At Source as per provision of Section 195 of the Income Tax Act .
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- MSME disclosure and disallowance
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
