rate of tds u/s 195 for fees for technical and ssrvice

[satbir singhwahi]

Kindly clarify what are the conditions for rate 10.3 %.What industrial policy agreement required.

[Ganeshan Kalyani]

Sir, in case payee not having valid PAN, then TDS rate as per rate prescribed or 20% whichever is higher will apply. While calculating TDS rates we need to consider the provisions under Double Taxation Avoidance Agreement (DTAA) for the relevant country, if any. In case payee is fulfilling all the conditions as prescribed in the DTAA then rates as per DTAA will apply. Thanks.

[satbir singhwahi]

Thks Sir

The professional is giving online management services and has pan but DTAA condition TRC not furnished. So rate will be 10.3 or 30.09. For 10.03 there is condition of agreement and industrial policy, which I am not able to get. So Guide.

[Ganeshan Kalyani]

Sir, certain details would be required from your end to arrive at the rate applicable. Name of the Country, amount of transaction etc. I would suggest to consultant or chartered accountants who would study your case and give suitable advise. Thanks.

AI Summary

Clarification on TDS Rate Under Section 195 for Technical Services Fees Without TRC; PAN Available; DTAA Considerations A discussion on the applicable Tax Deducted at Source (TDS) rate under Section 195 for fees related to technical services. The initial query seeks clarification on the conditions for applying a 10.3% rate and the necessity of an industrial policy agreement. A response explains that if the payee lacks a valid PAN, the higher of the prescribed rate or 20% applies, and Double Taxation Avoidance Agreement (DTAA) provisions should be considered. The inquirer mentions the payee has a PAN but lacks a Tax Residency Certificate (TRC), questioning the applicable rate. Further advice suggests consulting a professional for specific guidance.