if a company pay professional fee or consultancy fee like fees for sale promotion service to a foreign company and service is utilised in india. Does company need to deduct TDs, if yes what is TDS rate and under which section TDS should be deducted ?
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TDS rate on professional fee u/s 195
Replies (4)
20% if the foreihn company doesn't have PAN otherwise 10.51%. Grossing up shall also be required if the tax is being born by Indian party.
Anuj
+91-9810106211
femaquery @ gmail.com
Please check section 195(h) ,4th point in ready reckoner "where the agreement is made on or after June1,2005" TDS rate is 10.3% if payment doesn't exceed 1 crore.
If the Agreement is not approved by the Government, then the TDS rate is 30% + cess + SC. Anyone may please confirm this
TDS Rate Chart for FY 2023-24 (AY 2024-25) (cleartax.in)
not defined here. But its a professional service that 194j is not applicable cause this section is applicable only to resident payments.
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