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

TDS on cross border service fees depends on PAN and DTAA compliance, with rates set by documentary proof. The issue is determination of the TDS u/s 195 rate on fees for technical and management services: absence of a valid PAN results in withholding at the prescribed rate or a higher specified percentage; where cross border payments are involved, rates under the DTAA apply only if the payee satisfies treaty conditions and furnishes a Tax Residency Certificate and related documentation. Professional advice is recommended to assess country of residence, transaction particulars, and documentary compliance before fixing the withholding rate.