Dear All,
Please confirm the tds rate in following situation
As per Budget amendment tds rate for foreign payment in respect of fee for technical service is 25%, DTAA rate for Polland is 22.5% and foreign party does not have PAN so applicability of Section 206AA. In that situation what is the rate of TDS?????????
Regards
CA. Naveen Jain
TDS on Foreign Technical Services: 25% Rate Applied; Clarifying Impact of Section 206AA on Surcharge and Education Cess. A forum participant inquired about the appropriate Tax Deducted at Source (TDS) rate for a foreign payment related to technical services, given a 25% rate per budget amendment, a 22.5% rate under the Double Taxation Avoidance Agreement (DTAA) with Poland, and the absence of a Permanent Account Number (PAN) for the foreign party, invoking Section 206AA. A response clarified that TDS should be deducted at 25%. The participant further asked if surcharge and education cess apply to the 25% rate, noting Section 206AA does not specify these additions. (AI Summary)
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