Hi, We are Microsoft partners and we need to make payments to Microsoft’s Singapore subsidiary for licenses and technical services. This is our first transaction to their Singapore subsidiary, I have few questions, would appreciate if you experts can help me in understanding & clearing the doubt.
1. Rate of withholding tax, so far I am aware of, it should be 25% but MS says it is 10% ( 10.815 % with all cesses) now. Please confirm which one is correct and would be great if you can forward any guidelines to refer.
2. Which cesses & what rates are applicable while withholding the tax.
3. In which clause / section, we should deduct the tax.
Thanks in advance for the help
CAclubindia
