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tds on personal resi house design

satbir singhwahi

Amount of design charges are to be paid to Company in Singapore by a salaried individual , for design of residential house . Whether tds u/s 195 applicable ? As per Article 12 para 5 (d)  of DTAA with singapore this seems to be exempt .

Withholding tax on cross-border consultancy fees may not apply where foreign company lacks a permanent establishment in India. Withholding tax under section 195 is not required on design fees paid to a Singapore consultancy for a personal residential house where the foreign company has no Permanent Establishment (PE) in India; the DTAA exemption provision supports that result. (AI Summary)
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CAGOPALJI AGRAWAL on Mar 4, 2014

If the company has no PE in India and into the consultancy business, no withholding tax is required.

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