Gross payment has been made to Company located at denmark for software consultancy charges in dollar through credit card, please suggest tds applicability in this case where payment has already been made in gross amount
,is tds required to be deposited under section 195 @ 25 percent
TDS should be deducted u/s 195.
Some Important rates mentioned in the Finance Act, 2020 for the purpose of withholding tax u/s.195 are as under:
Dividend–20%
Royalty–10%
Fees for technical services–10%
Interest (other than 194LB / 194LC / 194LD) –20%
The above rates shall be increased by education cess @ 4% and applicable surcharge to corporate / non-corporate assessee. Rates mentioned in DTAA should be applied if they are more beneficial.
CAclubindia
