Payment to Non-resident contractor

Question : For an amount payable to non resident contractor, TDS deducted would be -

a. 2%
b. 10%
c. Not deductible
d. As determined by AO or under DTAA whichever is favourable to assessee.
Replies (2)
Quick Summary
This discussion clarifies the Tax Deducted at Source (TDS) applicable to payments made to non-resident contractors. It highlights that TDS must be deducted under Section 195, considering either the rate specified in the Double Taxation Avoidance Agreement (DTAA) or as determined by the Assessing Officer, whichever is more beneficial to the assessee.

Tds hve to deduct U/S195 or Under DTAA whichever is favourable to assessee
TDS to be deducted u/s 195 irrespective of any nature of payment.

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