What should be tds amount?

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anshu (Querist)

05 February 2014 A person residing in Abu Dhabi(say XYZ) engaged in the business of financial services and has large scale of clientele in UAE who are interested to invest funds in the financial products of Indian companies; Mutual Funds etc will refer its clientele to company (say ABC) in New Delhi.
Compensation is paid for the services rendered by XYZ to ABC company either by account payee cheque, demand draft.
please suggest how should I calculate TDS on such transactions?

Vishal D Shah

Vishal D Shah (Expert)

05 February 2014 Why pay tds. Get treaty benefit..

anshu

anshu (Querist)

06 February 2014 Sir,
Could you please explain.
How can I get treaty benefit?

Thanks

Vishal D Shah

Vishal D Shah (Expert)

06 February 2014 India uae treaty does not have article on fees forttechnical service this if services are rendered outside India they will be treated business income. In the absence of pe it would not be charged to tax in india

anshu

anshu (Querist)

06 February 2014 If it has pe in India?

Vishal D Shah

Vishal D Shah (Expert)

06 February 2014 Taxable at 40%. Consult a CA for proper planing.

anshu

anshu (Querist)

06 February 2014 Sir,
Could you please give me the information of RBI n FEMA in this transaction, for both if PE in INdia and if PE is not there?

Thanks

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