Hey friends need sum advice pls!!!
Our agent is a company incorporated in Nigeria. We are paying him fees for export market development. As DTAA wid Nigeria is stil under negotiation so our Act shall apply.So wil dis be taxable under fees for technical service or it wil not be taxable at al.
Awaitin quick response...as matter is urgent!!!!!
Thank u in adv!!!
As payment is made to a non-resident it is considered u/s 195 and not under 194J. I have considered it as non-resident because it is registered in Nigeria. Hence, TDS will be applicable.
The amt u paid to the nigerian agent will be taxable as technical fees as per the old provision of DTAA till the negotiation is final.
It will be taxable u/s 195 and if the DTAA does not exist as u claim it to be, then the rate of tax is to be 10% +SC+ EC + HEC
CAclubindia
