Fees for consultant from Hongkong /Singapore

[seetha lakshmi]

We are planning to hire a consultant from Hongkong or Singapore. the consultant will be in India to render services for a period of 5 months. Does this overseas company, from whom we are hiring the consultant, need to apply for PAN under Indian Income Tax? What will be the withholding tax rate if the consultant is hired from the Hongkong company? What will be the withholding tax rate if the consultant is hired from the singapore company/ thanks

[CAGOPALJI AGRAWAL]

Considering the provision of section 206AA, it would be required to apply for PAN. Withhoding tax for both the countries is 10% in case of FTS.

[Anuj Gupta]

Please clarify whether consultant is a company or an individual.Your queries will be answered based on the answer you provide.

AI Summary

Withholding tax on cross-border consultancy: foreign payee should obtain PAN under section 206AA and tax withholding may apply. An overseas company supplying a consultant in India for five months should obtain a PAN under section 206AA; withholding obligations apply and, for payments characterized as fees for technical services (FTS), a withholding of 10% was indicated, but the actual rate depends on whether the recipient is a company or individual and on payment characterization and treaty applicability.