Respected All,
Our Company has to remit a payment against service to Korean Company in South Korea
According to the agreement between India & Korea the TDS shall not exceed 15 percent of the gross amount for technical services.
As per the rule implemented from 1.4.2010 if the deductee does not have a PAN the rate is 20.60%. This is irrespective of the Double Tax Avoidance Agreement (DTA). Tax TDS rate on Service Charges is only 10% as per the Indian Finance Act, which is lower than the 15% mentioned in the DTA, but this is applicable for PAN holders only.
In Korea, Nobody has the PAN.
So at what rate, I have to deduct the TDS and how i issue the TDS certificate to that Korean Company. Pleasse Advice.
Best Regards.
Pradeep Kaushik