TaxTMI 
TaxTMI 
TaxTMI 
TDS RATE FOR REMITTANCE ABROAD
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....DS RATE FOR REMITTANCE ABROAD<br> Query (Issue) Started By: - JAYANTL AASHER Dated:- 17-1-2023 Last Reply Date:- 18-1-2023 Income Tax<br>Got 1 Reply<br>Income Tax<br>A GERMAN COMPANY HAS RENDERED TECHNICAL SERVICES TO AN INDIAN COMPANY. THE REMITTEE IE THE GERMAN COMPANY HAS SUBMITTED TRC AND NO PE CERTIFICATE AND HAS PAN TOO. WHETHER TDS WILL APPLY? IF SO AT WHAT RATE TDS SHOUD BE DEDUCTED BEFORE....
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.... MAKING PAYMENT TO THE GERMAN COMPANY? Reply By PRIYACHARAN SR: The Reply: "My Opinion" W.r.t querry on payment of technical services fee, please note that such payments are covered under section 9 of the Income tax act. The above payment gets taxed in the hands of non resident company in India, irrespective of the fact whehter such company has a PE in India or not, owing to explanati....
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....on to section 9(2) which is produced below for your perusal. "For the removal of doubts, it is here by declared that for the purposes of this section, income of a non-resident shall be deemed to accrue or arise in India under clause (v) [Interest] or clause (vi) [Royalty] or clause (vii) [Fees for technical services] of sub-section (1) and shall be included in the total income of the non-res....
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....ident, whether or not: a) The non-resident has a residence or place of business or business connection in India; or b) The non-resident has rendered services in India." Kindly examine rates prescribed in India - Germany DTAA or the applicable rates as per Income tax act and you may withold TDS accordingly. Further in case you wish to deduct TDS at lower rates, you may apply for certificat....
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....e under section 195(2)/195(3)/197 with the jurisdictional income tax officer. By applying for a certificate, the transaction also gets validated with the income tax authorities before the payment is executed.<br> Discussion Forum - Knowledge Sharing ....