What is the rate of TDS on Technical Fees

This query is : Resolved

Share Report Follow Query Ask a Query

Ramdinesh G

Ramdinesh G (Querist)
Follow

10 May 2010 What is the Rate of TDS to be deducted on "Technical Fees" paid to Foreign Company?

Krishan

Krishan (Expert)
Follow

10 May 2010 Withholding Tax Rates differes from country to country.

Please refer Withholding Tax rates chart..

according to my knowledge, TDS rate would be deduted @ 10% + surcharge and cess..

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

10 May 2010 Any person responsible for paying any interest or any other sum (not being salary) to a non-corporate non-resident or to a company other than a domestic company shall, deduct Income tax at source there from as per the rates specified in the Finance Act.

Tax has to be deducted at source at the time of payment of the amount or at the time of credit of the amount to the payee’s account whichever is earlier.

For deduction of tax at source under section 195 only consideration would be whether payment of sum to non-resident is chargeable to tax under provisions of Act; sum may or may not be income or income hidden or otherwise embedded therein; scheme of tax deduction at source applies not only to amount paid which wholly bears ‘income’ character but also to gross sums whole of which may not be income or profits of recipient - Headstart Business Solutions (P.) Ltd., In re [2006] 155 Taxman 639 (AAR - New Delhi).

In the case of remittance to a country with which a Double Taxation Avoidance Agreement is in force, the tax should be deducted at the rate provided in the Finance Act of the relevant year or at the rate provided in the DTAA, whichever is more beneficial to the assessee —Circular : No. 728, dated 30-10-1995.

Ramdinesh G

Ramdinesh G (Querist)
Follow

10 May 2010 What would be the TDS Rate to be deducted if the Vendor is of Hongkong ?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

10 May 2010 INDIA DONT HAVE DTAA WITH HONG KONG SO TDS TO BE DEDUCTED @40%+SC+CESS AS APPLICABLE.

YOU CAN ALSO CONSULT WITH YOUR TDS ASSESSING OFFICER IN THIS MATTER TO ADVISE YOU THE RATE OF TAX TO BE DEDUCTED AGAINST SUCH PAYMENT.

OPINION OF OTHER EXPERT ALSO SOLICITED

Ramdinesh G

Ramdinesh G (Querist)
Follow

10 May 2010 What is the Rate of TDS to be deducted for Technical Fess payable to Hongkong Vendor and under what section? Is it 10% OR 40% (also provide breakup of Surcharge/Cess/H.Ed.Cess).

Ramdinesh G

Ramdinesh G (Querist)
Follow

10 May 2010 What is the Rate of TDS to be deducted for Technical Fess payable to Hongkong Vendor and under what section? Is it 10% OR 40% (also provide breakup of Surcharge/Cess/H.Ed.Cess).

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

10 May 2010 40%+sc 2.5% +cess 3%