TaxTMI 
TaxTMI 
Question - What are the proposed in Finance Bill 2015 to reduce the hardship faced by the small entities in respect of income to royalty and fees for technical services ?
Reduction in rater of tax on income by way of Royalty and Fees for technical services in case of non-residents
28 Feb 2015 
1 Reply 
1137 Views Asked by
Tax on royalty and fees for technical services: reduced withholding rate for non residents effective from the 2016-17 assessment year.
Finance Bill 2015 proposes reducing the withholding tax rate on gross receipts of royalty and fees for technical services paid to non-residents where such income is not effectively connected with a permanent establishment in India; the reduced rate is intended to relieve hardship for small non-resident recipients and applies from the assessment year commencing after 1 April 2016. (AI Summary)
Finance Bill 2015 proposes reducing the withholding tax rate on gross receipts of royalty and fees for technical services paid to non-residents where such income is not effectively connected with a permanent establishment in India; the reduced rate is intended to relieve hardship for small non-resident recipients and applies from the assessment year commencing after 1 April 2016. (AI Summary)