TDS u/s 195 :: Interesting

Dear All,

Fact of The case: -

The Company to whom TDS has to be deducted is an upstream (E&P) Company. This company is takeing the services of Non-resident.

Section 44BB: is applicable being mining upstream industry and accordingly deemed income of 10% will be taken and TDS u/s 195 @ 40% deducted which comes to 4% (100*10%*40%).

Section 44DA: by F.Act 2010 it says that Section 44BB will not be applicable if the same income or expd fall under Section 44DA.

Since Section 44BB applicable to Non-Resident only while 44DA is applicable for non-resident having PE in India. Section 115A coveres all other cases which are not covered for non-resident.

Now in view of changes made by Finance Act'2010 at what rate the TDS will be deducted if a non-resident having PE in India providing services to an Upstream (E&P) Company.

Thanks & best Regards: -

CA. Rajiv Kumar Pandey

+91-9957171572