TDS u/s 195

This query is : Resolved

tarsem (Querist)
Follow

26 March 2009 A company in India gets its floor area covered by carpets by a company in singapore.which may or may not be a technical serice.

My query is that if the above service provided by the singapore company dos not fall under the definition of technical service then
whether the indian company is required to deduct TDS and if liable then at what rate

Tushar Yerawar

Tushar Yerawar (Expert)
Follow

26 March 2009 If it does not fall under technical service and if foreign entity does not have Permanent Establishment in India no Withholding is required. If they have PE in India and income is attributabele to that PE then should be taxable as business income and TDS needs to be deducted @42.23%

Rajesh Kumar

Rajesh Kumar (Expert)
Follow

28 March 2009 This is other sum payable- rate of TDS is 30% & 40% (in case of companies) plus surcharge and education cess.
One needs to examine if there is any DTAA with singapore or not, if it is there- where the tax is payable in such transaction. If the Tax is payable in India, tax should be witheld.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now