What is the rate to be deducted for TDS on royalties and fees for technical services for foreign remittances? Is it 25.75% or 10.3%? Is the new budget amendment of 10.3% effective or only proposed?
yashsr (CA) (2285 Points)
11 May 2015What is the rate to be deducted for TDS on royalties and fees for technical services for foreign remittances? Is it 25.75% or 10.3%? Is the new budget amendment of 10.3% effective or only proposed?
CA Aman Gupta
(Chartered Accountant)
(344 Points)
Replied 11 May 2015
Finance Bill 2015 is yet to be approved by the President of India. Till such, you may say that the amendents in FB 2015 are proposals. However, once assented by POI, the new rate @ 10% of deduction on Royalty & Fees for technical services will be effective from 01-04-2015 (i.e AY 16-17)
However, you may like to go through the provisions of Sec 294 of the Act and decide.
yashsr
(CA)
(2285 Points)
Replied 11 May 2015
So at the moment it is 25.75%, correct? And if once confirmed, how will it be effective from 1/4/15? I believe there can't be a retrospective amendment in such a case. So maybe they will notify a date like say 1st July 2015 onwards, correct?
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