If Accreditation fees (Professional fees) are paid to a Foreign Company which does not a PAN and also does not a PE in India, then what % of TDS should be deducted on such payment?
Shall it be 20% as per Sec 206AA or 40% as per the rates in force?
Menu
TDS on payment to Foreign Company
Replies (3)
Tds will be deducted at 40% that is rate in force as section 206 AA specifically states that if PAN is not furnished tax will be deducted at higher of following:
1. Rate specified in section
2. Rate in force
3. 20%
1. Rate specified in section
2. Rate in force
3. 20%
But relexation has been given to Non-resident including foreign company for sec 206AA in a circular issued.
So tax rate will be rate in force or rate in DTAA whichever is lower
So tax rate will be rate in force or rate in DTAA whichever is lower
But relaxation is in respect of income of interest, royalty and fees fir technical services and not in respect of all incomes of non residents and further the circular only relieved non residents other than foreign company.
Recent Topic
- ITR form suggestion
- Post office KVP income.
- Free GST invoice tool I built for my practice R
- Clarification on Gratuity Exemption under Section
- GOODS AND SERVICE TAX - GSTR 1
- Correct ITR form
- Clarification required on Section 393 & Report
- Professional advance taxes
- Surrender pan process
- Tds on deceased's pan
Related Topics
CAclubindia
