Withholding Tax - URGENT!!!

Hi,

 

I would like to know about withholding tax and the procedures for it. If an Indian Company makes payment to a Foriegn Company in the way of Interest, is withholding tax applicable? If yes, then how should the tax be deposited and where should be the return filed?

Is it similar to TDS?

PLEASE HELP!!!!!

Replies (2)

Yes.. Similar to TDS.. Section 195.. Same return and method of TDS deposit.. Issue TDS cert to foreign company..

For rate of TDS check article 11-Interest of DTAA between India and resident country of foreign comapny you've paid interest.. If PAN for FC is not available 20% is rate..

Hi Vishal,

 

Thats true, WHT is similar to TDS. As its payments made by Indian Company to Forgein Company, Indian Income Tax is applicable.

 

Thanks

Hemant

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