tds on remittance to pakistan

[Guest]

Dear Sir

I need your help in this regards.  i run a proprietorship firm in Noida for  technical consultancy, third party inspection to textile industries. Now I got an order for inspecting/checking the fabric at Pakistan from a shanghai company. So I contact a person in Pakistan to do the inspection at Pakistan. Now I want to send  his service charge.  He does not have any PE in india. As per my knowledge india do not have DTAA with Pakistan  for this types of service. My questions are as below.

1. Whether TDS is applicable on this payment or not.
2. If it is applicable what is the rate.
3. Since there is no DTAA with the Pakistan what will be the TDS rate in DTAA heading  while filling the 15 CA form.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

TDS on nonresident service payments: whether withholding applies and how to report payments to a foreign contractor without PE. The payer is a proprietor in India hiring a Pakistan-based inspector with no Permanent Establishment in India to perform inspection services in Pakistan. The operative questions are whether Indian TDS applies to the remittance, what withholding rate applies if any, and which DTAA heading or treaty claim to indicate on Form 15CA when no tax treaty relief with Pakistan is claimed.