DTAA and TDS

This discussion explores the tax liability for consultancy services provided by a foreign company without a Permanent Establishment (PE) in India. While Section 115A mandates a 10% tax on such income, the applicability of Tax Deducted at Source (TDS) depends on the Double Taxation Avoidance Agreement (DTAA) between India and the foreign company's country. The rate most beneficial to the assessee, whether the domestic tax rate or the DTAA rate, must be complied with.