% 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

TDS rate follows DTAA; absent DTAA, domestic Income Tax Act rate applies to foreign remittances. TDS rate on payments to a non-resident for services is governed by the Double Taxation Avoidance Agreement with the recipient's country; if no DTAA exists, the rate under the domestic Income Tax Act applies to foreign companies and other non-resident recipients.