TaxTMI 
TaxTMI 
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
Rate of TDS
29 Jun 2009 
1 Reply 
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TDS on non-resident payments: apply Section 195 and relevant DTAA; otherwise apply standard domestic TDS rules.
Withholding for payments to a non-resident must be determined by reference to Section 195 read with any applicable Double Taxation Avoidance Agreement; if neither the section nor the treaty applies, the normal domestic TDS provisions govern, and determination requires review of the agreement, payment nature and residence facts. (AI Summary)
Withholding for payments to a non-resident must be determined by reference to Section 195 read with any applicable Double Taxation Avoidance Agreement; if neither the section nor the treaty applies, the normal domestic TDS provisions govern, and determination requires review of the agreement, payment nature and residence facts. (AI Summary)