TDS U/s 195 on payment to Foreign Engineer for Consulting Fees

[Guest]

Dear Sir,

We have deducted & Deposited TDS 20 percent at the time of making foreign service payment but our TDS Return 27 Q is not accepted by ITD.

as per ITD TDS will be applicable 25 percent

Please let me know is any Notification issued by ITD in this regard.

Kindly Reply.

Regards,

Rahul Patel

[Surender Gupta]

Various things to be considered I.e. Nature of payment, data with the concerned country etc. before answering the query.

[Guest]

Dear Sir,

Nature of Payment : Consulting Engineering Fees (Professional Fee)

Country : USA

PAN :  PANNOTAVBL

Please let me know what is the rate of TDS in this case

Regards,

Rahul Patel
 

AI Summary

TDS on foreign consulting fees: withholding rate disputed when payer lacks PAN and tax authority questions applicable rate. Withholding tax was deducted and deposited on payments for consulting engineering fees to a foreign resident (USA) without PAN, but the tax department contested the withholding rate; resolution requires review of the payment's nature and relevant cross-border information to determine the correct withholding obligation.