Double Taxation Avoidance Agreement

Dear Mr.Ritesh,

In my opinion, tax should not be deducted in the present case if the agents don't have a business establishment in India. Pls refer Sec 9 of IT Act.

Rgds,Venkat

Dear Mr Ritesh,

First of all I would like to clarify that there is no DTAA betwenn India- Hongkong as of today. Hence you will not have any choice but to follow the Income Tax Act.

If the payment your making is as aganst the freight charges incurred by the Hongkong Co., I dont see there is any income acruing in India. It should form part of the business income of such Hongkong Co.

Such income wil not be liable to withholding tax in India if the Hongkong Co does not have any business connection or fixed place of business in India(refer I T Act).

- Arihanth

Dear Mr Ritesh,

First of all I would like to clarify that there is no DTAA betwenn India- Hongkong as of today. Hence you will not have any choice but to follow the Income Tax Act.

If the payment your making is as aganst the freight charges incurred by the Hongkong Co., I dont see there is any income acruing in India. It should form part of the business income of such Hongkong Co.

Such income wil not be liable to withholding tax in India if the Hongkong Co does not have any business connection or fixed place of business in India(refer I T Act).

- Arihanth

Dear Experts ,

I have to pay my vendor called Bureau Veritas who have done testing in our company at Gurgaon.

They are based out in Hong Kong.

Please let me know whether TDS is applicable or not. If yes, what is the rate.

Abhijit

Is there is any further development after 30 april 2010, on which govt empowers to do DTAA with hongkong