Dear All
India based company is availing services from Non Resident in Sri Lanka. Contract is for Business Development & Sales Promotion.
Whether TDS is Deductible???
Sunny jorkar (Article Assistant) (101 Points)
02 January 2015Dear All
India based company is availing services from Non Resident in Sri Lanka. Contract is for Business Development & Sales Promotion.
Whether TDS is Deductible???
Arif Ali
(Apt Co Advisory)
(1230 Points)
Replied 02 January 2015
yes under section 195. See the DTAA with Sri Lanka.
The TDS rate will be under DTAA or 10% whichever is beneficial to assessee.
If not PAN then whichever is higher as follow:-
10%
Rate under DTAA
20%.
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 02 January 2015
If the services are consumed for a project outside India then, by virtue of section 9(1), income of the non resident is not taxable in India and hence there will be no withholding tax. Otherwise, if the source of income if resident indian company is within India, then section 195 read with DTAA is applicable.
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