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.

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.