Witholding Tax -Professional fees -company in Indonesia

Hi

Under Sec 195 , while making payment for professional fees to a company in indondesia, what rate of TDS should be deducted.

The DTAA between India and Indonesia talks of only Royalties and not Fees for professional and technical services.

Pls revert - IT'S URGENT

CA SANJAY DODRAJKA

 

 

Replies (4)

i am not very sure but i think it is 40%+SC+ECESS

Originally posted by :Sanjay Dodrajka
" Hi
Under Sec 195 , while making payment for professional fees to a company in indondesia, what rate of TDS should be deducted.
The DTAA between India and Indonesia talks of only Royalties and not Fees for professional and technical services.
Pls revert - IT'S URGENT
CA SANJAY DODRAJKA
"

 

For Company 11.33% on royalty

Dear Sanjay

While making payment for Technical Fees you should First Consider DTAA with That Countary, if provision for the requisite Service is not Available then the Exsisting rate of TDS for Domestic Company will be Applicable.

In your Case, with DTAA no separate provision for Technical Service is Available, so the Rate @ 10% wil be applicable

 

Dear Sanjay

unless otherwise provided in the DTAA, rate of 10.3% will be applicable for TDS while making payment of fee for technical services in case of agreement made after June 1, 2005 and income of receipent does not exceed Rs. 10,00,000/- and in any other case rate of 11.33 % will be applicable.

regards

shashi

 

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