Suppose a co. in India is making to another entity in the country which has DTAA with India. Does this Indian Co. need to deduct TDS, if yes then at what rate?
And what about if Indian Co. makes payment to an entity in the country which does not have DTAA with India?
And also what would be the situation when Indian Co. receives payment from an entity in the country which has DTAA with India and which does not have DTAA with India?
1...in a celebrated case law it was held that in case of conflict between income tax provisions and dtaa the provisions of dtaa will previal to the extent they are more beneficial to the assessee......accordingly,the indian entity shd deduct tax as per rates specified in income tax act or the rates specififed under dtaa whichever is more beneficial to the foreigner
2.in this case relevant tax laws of foreign countries needs to be referred......also sec 91 needs to be taken care of in this case
CAclubindia
