12 February 2008
If this royalty payable as per the agreement, then it depends on the agreement date , the rates are prescribed under section 195 of the Income tax act. It varies from 20 to 30%. But id the country has DTAA agreement with India , the rate mention in DTAA or the rate prescribed in the section whichever is less will be applicable. If above commission is not royalty then, the rate prescribed under this section is 30% or the DTAA agreement rate whichever is less
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