If a US Company having branch in Bahamas, can the Bahamas branch avail DTAA benefits of India - US Treaty for Interest Payment as there is no treaty with Bahamas. If No, then what is the withholding tax rate for the same?
If a US Company having branch in Bahamas, can the Bahamas branch avail DTAA benefits of India - US Treaty for Interest Payment as there is no treaty with Bahamas. If No, then what is the withholding tax rate for the same?
Bahamas is a separate country. Withholding tax rate of US cannot be applied for BAHAMAS
withholding tax rates is DTAA is not entered with country
higher of following
1) 20% or
2) TDS rate applicable on nature of income (exa 30% in case of lottery)
If there is no DTAA with the receipent country, then Income Tax Act rates will be applicable, if there is no PAN for the party, Sec 206AA will be applicable and 20% TDS has to be deducted.
Yes the Bahamas Branch can avail the India-USA Treaty provided the US entity can provide the Tax Residency Certificate in that regard.
Anuj
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Naveen Fintech Pvt Ltd
Kolkata
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Gupta Sachdeva & Co. Chartered Accountants
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