effective date for change for Fees for technical services-reg

[Ramakrishnan Seshadri]

Dear Sir,

'Reduction in rate of tax on Income by way of Royalty and Fees for technical services in case of non – residents – Proposed Reduction in Royalty / FTS rate to 10% from 25%

• It is proposed to reduce the rate of tax provided under section 115A on royalty and FTS payments made to non-residents from 25% to 10%.'
• Could any inform us the effective date for this tds reduction in rate for fees for technical services.
• Whether this is immediate effect or after the finance bill approval by the president.
• Kindly experts clarify.
• Thanks & Regards,
• S.Ramakrishnan

AI Summary

Tax rate reduction on royalties and fees for technical services: question whether change takes effect immediately or after legislative approval. Proposed reduction of the tax rate on royalties and fees for technical services paid to non residents raises whether the reduced withholding rate takes effect immediately or only after enactment and presidential assent, with implications for payors' withholding obligations pending formal confirmation of the Finance Bill's commencement timetable.