Applicability of Witholding Tax in case of import, if foreign company has PE in India

[VaibhavKumar Jain]

Dear Members,

Request for your kind views, with case laws or section reference, for Applicability of Withholding Tax in case of import of material, if foreign company has PE in India and it has not provided lower deduction certificate u/s 197(1) of income tax act.

Should we deduct the tax at 40%(plus appl. surcharge and cess)?

In such case, It will be hardship for foreign company.

Thanks and Regards

Pankaj Tirthani

Bharat Oman Refineries limited

Mob - 9222224099

[DR.MARIAPPAN GOVINDARAJAN]

In my view yes.

[VaibhavKumar Jain]

Dear Sir,

Thanks for your kind reply. Can I get some section reference, case law or any other reference.

Pankaj Tirthani

Bharat Oman Refineries limited

Mob - 9222224099

[Ganeshan Kalyani]

In my view, TDS is not deductible in case of import of material.