% of TDS on non resident indian.

[DHARMENDRA SINGH]

Dear All,

Please suggest us what % applicable if payment made to non resident indian for designing charges & also for non domestic company.

[CA Rachit Agarwal]

TDS rate is per DTAA with the country where the remittance to be made.

If DTAA does not exist then rate as per the Income Tax act is applicable to foreign company.

AI Summary

Determine TDS Rate for Non-Resident Design Fees via DTAA; Use Income Tax Act Rate if No DTAA Exists. A query was raised regarding the applicable Tax Deducted at Source (TDS) percentage for payments made to a Non-Resident Indian for designing charges and to a non-domestic company. The response indicated that the TDS rate should be determined based on the Double Taxation Avoidance Agreement (DTAA) with the respective country. If no DTAA exists, the rate specified in the Income Tax Act for foreign companies should be applied.