TDS RATE ON TECHNICAL SERVICE FEE PAID TO FOREIGN CO.

[satbir singhwahi]

LOCAL COMPANY IS PAYING FEES FOR TECHNICAL SERVICES TO FOREIGN COMPANY HAVING PE IN INDIA. KINDLY GUIDE THE TDS RATE APPLICABLE ON SUCH PAYMENTS.

AI Summary

Local Company Debates TDS Rate for Foreign Service Fees: 10% or 40% Under DTAA with PE in India? A local company is paying fees for technical services to a foreign company with a Permanent Establishment (PE) in India and seeks guidance on the applicable Tax Deducted at Source (TDS) rate. One response states a 10% TDS rate is applicable. Another response advises checking the Double Taxation Avoidance Agreement (DTAA) of the foreign company's country, noting that if the foreign company has a PE in India, the tax rate is 40%.