Interest to a foreign company - tax applicability

[rama jogi reddy]

withholding tax for interest paid by a company to a foreign company (denmark) u/s195 Income tax @ 20% and also DTAA 20% is it diffierent from above?

[Ravi Chopra]

I am not sure but in my view the rate of withholding tax in DTAA with Denmark range from 10% to 15%. Kindly check the relevant provisions of DTAA.

AI Summary

Interest Withholding Tax Rate Dispute: Domestic Company vs. Foreign Company in Denmark Under Section 195 and DTAA A query was raised regarding the applicability of withholding tax on interest paid by a domestic company to a foreign company in Denmark under Section 195 of the Income Tax Act, which is stated at 20%. The question also pertains to whether this rate differs under the Double Taxation Avoidance Agreement (DTAA) with Denmark. A respondent suggested that the DTAA might have a withholding tax rate ranging from 10% to 15% and advised checking the specific provisions of the DTAA for clarification.