Rate of TDS

[madhavvan n]

One NRI Party has a NRO Account in Indis and has asked to remit their fees to NRO a/c in India and they are insisiting that TDS rate should be as per Indian income tax rates as specified in IT act and not as applicable for foreign payments pls let us know at what rate tds to be deducted

AI Summary

NRI Requests Indian TDS Rate for NRO Account; Review Section 195 and DTAA for Compliance and Consult a Professional. An NRI with an NRO account in India requested that their fees be remitted to this account, insisting on the TDS rate according to Indian income tax laws rather than those applicable to foreign payments. The response advises reviewing TDS provisions under Section 195 and any relevant Double Taxation Avoidance Agreement (DTAA) between India and the NRI's country. If neither applies, standard TDS rules are relevant. Due to the complexity, it is recommended to consult a professional with the details of the agreement, terms, and payment nature.