Tds on fee for technical services for foreign non residents

TDS 5883 views 17 replies

Can anyone tell me what is the current rate of tax for fee on technical services on transaction with UK?? Whats is the rate of TAX under DTAA ? and which rate should be used if the foreign party doesnt have PAn in India but has a PE in India???

Replies (17)

Rate should be 25.75%.

 

 

Anuj

femaquery @ gmail.com

Thank you Sir. Can you please tell me the rate as per DTAA for UK?

DTAA shall not be applicable in the present case.

 

Anuj

femaquery @ gmail.com

 

Actualy i had to prepare Form 15CB and we have to mention the DTAA rate there.

What if the technical service is for Construction Project as sec 195 Exclude this kind of services. Where will that kind of services be covered & what will be the T.D.S

 

Sec. 195 does not say anything about construction project ,albeit, DTAA talks about construction project.

 

anuj

So what % of T.D.S should we deduct, if we are taking Service of a South korean person who will stay here in India for more than183 for our construction project.

 

Then he shall become a resident and TDS @ 10% shall be deductible . Anuj Femaquery @ gmail.com

Tax has to be deducted @ 20.6% as the foreigner doesnt hold PAN.

TDS shall be deducted @ 20% IF the foreigner does not have PAN. Anuj Femaquery @ gmail.com

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So Finally can we do this:

We treat them as Non-resident for Jan'14 to March'14 (90 days), if they are joining from Jan'14 & deduct T.D.S U/s 195 @ 25.75%, because in Our T.D.S return we can't show them as resident for Current Financial yr that is March'14 yr. 

For F.Y 14-15, We could treat them as resident as we know they will become resident in that yr & we could deduct T.D.S @ 10% as they will be working from April'14 to Oct'14 (214 days).

(In case they don't apply for P.A.N at the time they come in India, then we have to deduct T.D.S @ 20% in any case) 

Divya,

For 2013-14, he can take benefit of DTAA provisions, if he has TRC from South Korean Tax Authorities.

 

 

Anuj

femaquery @ gmail.com

Sir,

If they Apply for P.A.N, then which form they should submit, Form 49A or Form 49AA... because we will treat them as Non-Resident in F.Y 12-13 & Resident in F.Y 13-14.


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