TDS

A service has been provided in India from a company outside of India.

Now a TDS of 40% is applicable, we don't make 40% how is it that the government can charge so high?  and why are some countries charged less? Can someone share with me, the different rates of TDS with different countries. 

I am curious to know if there is another way?

 

Thank you.

Replies (3)

Dear Sir,

Good question.........!

Though I am not sure but feel that the reason for different rates of Taxes with different countries can be -

If our so called Govt. feel that we have to encourage trade with a particular country then u will find a lower rate of taxes & vice a versa. (This is on part of our country - i:e at their choice)

Another reason could be the compulsions arising from other international agreements already signed by our country like with WTO, etc (these are forced steps)

If there is DTAA aggreement then the DTAA provisions will override the IT Act 

See if you feel the TDS is too high u can apply to AO under section 195(2) for a lower rate of deduction once obtained then you can deduct at lower rate...

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