TaxTMI 
TaxTMI 
Kindly clarify what are the conditions for rate 10.3 %.What industrial policy agreement required.
rate of tds u/s 195 for fees for technical and ssrvice
13 Aug 2016 
3 Replies 
1718 Views Asked by
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. (AI Summary)
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. (AI Summary)