Dtaa vs 195

TDS 739 views 1 replies

HI i am really struglng with withhodling tax concept. Pls suggest me the best way where i can  undestand and differentiate between DTAA and section 195 of IT act 1961.

Replies (1)
even I m also stuck in this sec 195 is withholding tax on payment to non resident which states tha before payment to non resident you should deduct tax at source at rate mentioned in sec (depends on nature of transaction say 10%, 20%) directly % on gross amt and surcharge plus edu cess that would be total tax liability now as per sec 90 r.w sec 90A a non resident assessee has option to go with provision of dtaa or to pay tax as per income tax act whichever is beneficial to assessee. dtaa is just a contract with another country to avoid double taxation the work u supposed to do is check out nature of transactn if taxable as per income tax act then deduct tax u/s 195 if not taxable then issue 15CB certificate for non deduction of tax if taxable then also check out rate as per dtaa and final tax will be the lower of both dtaa and income tax act hope it may help u any other query????????


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