Ø
In
case foreign entity have PE in India, then income to be computed under business
head and tax rate will be 40%.
Ø
In
case there is no PE, then refer DTAA between India and that country and obtain
the rate as per article of DTAA.
Ø
Then
refer section 115A of the Income tax act and obtain the rate and apply the rate
which is beneficial to you.
Ø
However
to apply DTAA foreign entity must have India PAN and his country TRC.
Ø
International
Law Firm - No TDS on their payment.
Ø
Export
commission is also not taxable.
Ø
No
TDS on advertisement payment to Google.
Ø
Rate
of forex – Buying rate on the date of deduction of TDS.
Ø
TDS Deduction from payments made to Non-Resident foreign shipping
Companies:
If the Payments are made to an agent of a Foreign(Non-Resident)
Shipping Liner. Tds need not be deducted on the following category of expenses:
Ocean Freight
Terminal Handling Charges
Demurrage Charges
Any other amount of Similar Nature (Like Addl.Ocean Freight/Addl.Demurrage/Addl.THC etc )
Ø
Form
15CA/ CB not required for transfer to NRO
from NRE account.
Ø
The Central Board of Direct Taxes has
clarified to field officers that the requirement of deducting tax at source
when a person makes payments to non-residents or foreign companies should be
enforced only on that part of the remitted amount that accounts for the
recipient's income chargeable to tax in India.
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