TDS on rentals paid to NRI

Pls can anyone let me know the rate at which TDS is to be deducted on rentals paid to an NRI (Spanish).

Replies (9)

TDS should be deduted @ 30.9% (30%-income tax, 2% e.cess and 1% s&h e.cess)

Dear Harshit,

If the property is situated in Spain then no need to deduct TDS since the said rent is not taxable in India.

Further the rates of TDS will depen upon the DTAA with Spain.

Thanks Amir.  The property is in India, can you provide me the rates prescribed in DTAA with Spain.

Dear Harshit,

Now I can definately say that Fatema was rite, TDS to be deducted @ 30%(no need to deduct education cess as per new amendments)

DTAA DOESNOT PROVIDE ANY RATE IN THIS CASE THEREFORE SEC 195 WILL APPLT & TDS WILL BE DEDUCTED @ 30%

Dear Harshit

Only surcharge is abolished completely.Cess is not abolished.But there is no cess while deducting  TDS.Except for TDS on Salary and TDS u/s 195.

So, Fatema is right.

Even i wanted to say the same thing.Amir, e.cess continues to exist for sec 195.

 

And Jitendra,surcharge is not abolished completely.It is applicable for TDS purposes only when the recipient is a foreign company and the payment/credit subject to TDS exceeds 1 crore.

Dear Harshit,

I have confirmed brother, Jitendra & Fatema are rite TDS will be deducted including Education Cess...

Since it is applicable in case of 195

Sorry friends I missed out on that & thanks for reminding..

Thanks Fatema, Amir and Jitendra for your response. i will go as per fatema answer TDS to be deducted @ 30.9%.

@ 30.9%................

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