Our client is having Hotel business in India. Client utilized the services of foreign company for getting the rooms hired and to pay the commission. This foreign company /entity does not have any permanent establishment in India. Whether my client needs to deduct TDS on the commission paid to non resident. At what rate? as foreign company does not have PAN in India.
In this case it seems the income of the foreign company is taxable in India. You need the examine the DTAA between India and that country. Use the rate given in DTAA and Income Tax Act -- whichever is lower. As the payee does not have PAN in India, you have to comply with section 206AA also.
Regards,
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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