Withholding tax
This query is : Resolved
31 May 2012
Dear All,
We have deducted TDS @ 10.3% on import service & made a outward remittance.
Service provider did not have any PAN.
Now, we have to issue the certificate.
Please tell which form to issue them & how to get it.
We have deducted TDS @ 10.3% on import service & made a outward remittance.
Service provider did not have any PAN.
Now, we have to issue the certificate.
Please tell which form to issue them & how to get it.
Ca Anand Dubey
(Expert)
31 May 2012
It deductee dont hav PAN no 20% rate will apply. Issue form 16A
31 May 2012
Please somebody be more clear. Difference between TDS & Withholding Tax.
Vishal D Shah
(Expert)
31 May 2012
Ananth, both are same. When payment is to non resident it is termed as withholding tax.
Further since you have deducted under Indian tax laws sec 206AA shall be applicable and TDS @20% needs to be deducted. Hope you checked DTAA for beneficial provisions, if any.
regards.. cavishalshah@gmail.com
Further since you have deducted under Indian tax laws sec 206AA shall be applicable and TDS @20% needs to be deducted. Hope you checked DTAA for beneficial provisions, if any.
regards.. cavishalshah@gmail.com
Vikash Maheshwari
(Expert)
31 May 2012
Dear Ananth,
In case of Payments made outside India and the Payee does not have PAN ,then tax will be deducted as per section 206AA.This section has an overriding effect on any other provisions of Income Tax Act (even Sec 195 relating to TDS provisions to foreigners)
As per provision of section 206AA the rate of TDS is @20% ,however no cess and surcharge will be imposed .
In case of Payments made outside India and the Payee does not have PAN ,then tax will be deducted as per section 206AA.This section has an overriding effect on any other provisions of Income Tax Act (even Sec 195 relating to TDS provisions to foreigners)
As per provision of section 206AA the rate of TDS is @20% ,however no cess and surcharge will be imposed .
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