TDS u/s 195-Urgent

TDS 542 views 1 replies

we had to make payment of a professional fees to a USA entity , TDS is to be deducted at what rate. If it make difference if it is a company.Is Double Tax Treaty is applicaple on it

Replies (1)

Mr.Harish Bhoota

I am hereunder reproducing the relevant matter useful to you from the Taxmann's Ready Recknor at page 105.

"Royalties and fees for technical services would be taxable in the country of source at the following rates:

a. 10 per cent in case of rental of equipment and services provided along with know-how and techncal services.

b. any other case-

i. duirng first five years of the agreement -

-15 percnet if the payer is Governemnt or specified organisation;

-20 percent in other cases;

ii. subsequent years, 155 in all cases.

Income of Govrnment and certain institutions will be exempt from taxation in the country of source.

To get more clarification you must go through DTAA with the USA.

Best Wishes

Sathikonda


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register