Dear Members

Indian company booked a invoice towards fee for technical services (FTS) from a non resident company for apprx USD 3000.

INR converted value = apprx ₹. 300,000/-.

While making outward remittance to the entity, withholding tax was made @ 10.4% say 31,200/- and tds was paid to government under section 393 vide code 1057. This was done under DTAA provisions between India and the foreign country. The non resident payee does not have a PAN in India. It does not have a PE in India. It has given TRC to the indian payer company.

Form 146 (15CB) was also obtained.

After filing TDS return in Form 144 (27Q), TRACES has considered TDS @ 50% and has sent a demand of 150,000 less 31,200 plus interest apprx ₹. 130,000/-.

Please advise if -

a) a rectification request be placed under TRACES;

b) appeal be filed

c) any other remedy is available

Regards

CA Dipjyoti Majumdar