TaxTMI 
TaxTMI 
A GERMAN COMPANY HAS RENDERED TECHNICAL SERVICES TO AN INDIAN COMPANY. THE REMITTEE IE THE GERMAN COMPANY HAS SUBMITTED TRC AND NO PE CERTIFICATE AND HAS PAN TOO. WHETHER TDS WILL APPLY? IF SO AT WHAT RATE TDS SHOUD BE DEDUCTED BEFORE MAKING PAYMENT TO THE GERMAN COMPANY?
TDS RATE FOR REMITTANCE ABROAD
17 Jan 2023 
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Taxability of fees for technical services: withholding required under Indian law or applicable DTAA; apply under section 195 for lower rate.
Payments for technical services to a non-resident are deemed to accrue or arise in India under Section 9 and are taxable in the non-resident's hands irrespective of a permanent establishment; withholding should follow applicable DTAA rates or Income-tax Act rates, and the payer may apply for a lower withholding certificate under Section 195. (AI Summary)
Payments for technical services to a non-resident are deemed to accrue or arise in India under Section 9 and are taxable in the non-resident's hands irrespective of a permanent establishment; withholding should follow applicable DTAA rates or Income-tax Act rates, and the payer may apply for a lower withholding certificate under Section 195. (AI Summary)