A Mauritius based Firm has conducted the audit of an Indian Co’s(having parents in Mauritius) corporate structure. What will be the TDS rate for withholding taxes from the fees payable to them which is approximately Rs. 40,000/-.
As per Article-14 of the India Mauritius DTAA fees for professional services is taxable in the country of residence of the service provider (if he has no place of business in India) i.e. not taxable in India.
No rate for withholding such taxes is provided in the Treaty either.
In these circumstances does sec 195 of the I.T. Act becomes applicable?
As per sec 195 TDS on fees for technical services is based on the agreement of the non resident with the Indian co and the agreement has to approved by the Central Govt.
But in this case there is no such agreement.
In view of the above will the TDs rate under " any other Income" u/s 195 will be applicable? Or as per the DTAA no TDS is applicable at all.
Please help.
CAclubindia
