Whather TDS is deductable on the payment made out side india

TDS / TCS 950 views 3 replies

Whather TDS is deductable on the payment made out side india i.e.France for Rent and what is the rate of TDS as per Income Tax India and DTAA?

Replies (3)

Yes manoj, the tax is to be deducted on such rent....

 

 

And, i think, the same rates are applicable in foreign case even

No tax is deductible if the property for which the rent has been padi is in france.

Reason: Sec 195 applies only when you make a payment

1. The payment is to a Non-resident and

2. It is an Income chargeable under the Act.

In this case, assuming the France Party to be a Non-resident, his global is NOT chargeable to tax in India as it is not earned in India as the property is situated in France.

AGAINST VIEW

The Karnata Highcourt in Samsung Case in Sep 2009 took a contrary view that TDS should be made on all payments to NR. However, recently Supreme Court has stayed this Judgement. So, this case will not apply.

Final Conclusion

NO TDS. Get CA Certificate and pay the amount.

 

Shiva

Dear Manoj,

I think, IF PROPERTY FOR WHICH RENT IS PAID IS SITUATED IN INDIA ONLY THEN TDS WILL BE DEDUCTED...(As per Article 6 of DTAA with France)

Sec 9 also says Income arising from a Capital Asset will be treated as demeed to acrue or arise in India if Capital Asset is situated in India..  

 


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