Tds on testing charges (urgent..)?

Hi Friends,

A Private Ltd. Co. has paid Testing Charges around Rs. 60 Lacs to a non resident company i.e canadian company without deducting TDS. However the non resident has no permanent establishment in India. 

Now my question is whether TDS should have deducted on this transaction under sec. 195 or any other section.

Please give the reference of the section for the above transaction and if TDS applicable than rate & Section also.Whether DTAA provision will be applicable here, and if yes then want to know that provision also.

Replies (3)

TDS on testing Charges will be 10%....... I think you Should Deduct TDS at the Tym of Bill Booking now tax department may Disallow your Expenses...........!

YOU HAVE TO PAY TAX UNDER SECTION 195 @ 10% AND FILE YOUR TDS RETURN

NON PAYMENT OF TDS WILL ATTRACT DISSALLOWANCE OF EXPENDITURE.

 

 

Here the TDS should have been deducted @ 20% if the foreign Company doesn't have PAN.(sec 206AA)

 

DTAA provisions may help you, but for that the whole case needs to be understood in totality.

 

Anuj

femaquery @ gmail.com

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