Payment Made to person(Individual) in UAE for Web site Designing in UAE by india LLP.
Payee is having PAN of india. Payee has also provided TRC of UAE.
What is the applicabilty of TDS.
akshay hinger (accountant) (51 Points)
22 May 2017Payment Made to person(Individual) in UAE for Web site Designing in UAE by india LLP.
Payee is having PAN of india. Payee has also provided TRC of UAE.
What is the applicabilty of TDS.
Nupur
(Chartered accountant)
(23 Points)
Replied 22 May 2017
tds will be deducted at normal rates i.e.10% since you have got trc as well as pan
Abhinav
(CA)
(397 Points)
Replied 25 May 2017
Refer Article 14 of India UAE DTAA. If the web design services are provided remotely from UAE with no physical presence of self/employees in India (resulting in no Permanent Establishment in India), the amount paid is not taxable in India. In such a case, there is no TDS required to be deducted on that payment. A CA can certify in Form 15CB regarding this to allow remittance to UAE. No PE undertaking and Form 10F will need to be obtained from payee.
Specific fact evaluation is needed to arrive at a proper solution.
ARTICLE 14: INDEPENDENT PERSONAL SERVICES
1. Income derived by a resident of a Contracting State (UAE) in respect of professional services or other independent activities of a similar character shall be taxable only in that State (UAE), except in the following circumstances when such income may also be taxed in the other Contracting State (INDIA) :
(a) if he has a fixed base regularly available to him in the other Contracting State (INDIA) for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other Contracting State (INDIA) ; or
(b) if his stay in the other Contracting State (INDIA) is for a period or periods amounting to or exceeding in the aggregate 183 days in the relevant "previous year" or "year of income", as the case may be; in that case only so much of the income as is derived from his activities performed in that other State (INDIA) may be taxed in that other State.
2. The term "professional services" includes independent scientific, literary, artistic, educational or teaching activities as well
as the independent activities of physicians, surgeons, lawyers, engineers, architects, dentists and accountants.
anuj saxena
(officer)
(37 Points)
Replied 27 May 2017
CAclubindia
