Respected Sir,
We are in process for ECB from Export Import Bank- South Korea.
We have to remitt Management Fee before Draw Dawn of the Funds under ECB.
Do we have to deduct TDS on the Management Fee, being remitted to Exim Bank- Korea.
If No, Please provide the reference.
If Yes, What is the rate.
Best Regards.
TDS Deduction Required on Management Fee to Export Import Bank of South Korea Under ECB, Per Section 195 Guidelines. A user inquired about the requirement to deduct Tax Deducted at Source (TDS) on a management fee being remitted to the Export Import Bank of South Korea under an External Commercial Borrowing (ECB) arrangement. A respondent clarified that TDS must be deducted under Section 195, with a rate of 10.30% if the non-resident has a PAN in India, and 20% if not. Another participant noted that advance payments abroad without a Letter of Credit (LC) or Bank Guarantee (BG) could be problematic if services are not rendered. It was further explained that advance payments up to USD 100,000 can be made without BG or LC, subject to certain conditions outlined in the RBI Master Circular. (AI Summary)
TaxTMI 
TaxTMI 
