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Tds on payment to a foreign company

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Experts/Friends

My Company has to make a payment to a company in Singapore towards using its technical know how.

If the DTAA rate between India and Singapore is 10%, will the withholding tax rate be 10% or be 20% as it does not have a PAN in India.

Regards,

Replies (5)
Friends/Experts Looking forward to your opinion, views please. Thanks,

Sir, TDS should be deducted @ 20% u/s195.

As per my view it should be at 25% according to sec 115A..If the company provides Tax residency certificate then the company can obtain benifit of DTAA otherwise tds deduction should b at 25%

Thanks for your responses.

Now in the absence of PAN in India, regular Form 16A cannot be issued. The question is will the deductee be able to obtain credit of tax deduction at source @ 20% or 25% from its tax payable by way of filing of tax return in Singapore if the deductor Indian company gives a sort of declaration or certificate or statement about the deduction and deposit of tax in India.

Regards,

 

Sai sir is correct. TDS should be deduct u/s 195(f)/(g) @ 25% {increase by educ. cess and surcharge(if any)}.  Pardon me for earlier reply.

Sec.206AA over rides the DTAA.

 

Please check the following link:

CLICK HERE

Very usefull Article written by Deepak Agrawal Sir


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