Withholding tax

TDS Consequence on non-furnishing of PAN by non-resident to Deductor

Income Tax - Article explains Consequence on non-furnishing of PAN by non-resident to Deductor who is required to deduct or withhold tax on income of non-resident. Article explains in such cases Rate of Tax Deduction, Rate in case of interest, royalty, fees for technical services, dividend and payments on transfer of any capital assets, TDS rate if P...

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Countrywise Withholding Tax rates as per IT Act vis a vis Tax Treaties/DTAA

Income Tax - Certain income of non-resident, inter-alia, dividend, interest, royalty or fees for technical services shall be taxable as per the rates prescribed under the Income-tax Act or as per the rates prescribed under the DTAAs, whichever is more beneficial to such non-resident. ...

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Countrywise Withholding tax rates / Chart as per DTAA

Income Tax - Country wise Withholding tax rate on Dividend (not being covered under Section 115-O), Interest, Royalty and Fee for Technical Services ...

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Target marketing on overseas social media or automated advertising platforms not taxable as ‘Royalty’

Income Tax - Target marketing on overseas social media or automated advertising platforms not taxable as ‘Royalty’ In a major relief to taxpayers availing online marketing services from social media platforms like Facebook, the Bangalore bench of Income Tax Appellate Tribunal (ITAT) recently ruled in the case of Urban Ladder Home Décor Soluti...

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Detailed Analysis of Section 195 along with latest case laws

Income Tax - Any person responsible for paying to a non-resident, not being a company, or to a foreign company, shall deduct income-tax thereon at the rates in force is responsible to deduct tax u/s 195 of the act. Nature of Payment a) Any interest (not being interest referred to in section 194LB, 194LC and 194LD). b) Any […]...

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Additional Income-tax on distributed income by company for buy-back of unlisted shares

Income Tax - 20% Withholding Tax Rate on profits distributed by unlisted companies to shareholders through buy-back of shares Existing provisions of Section 2(22)(e) provide the definition of dividends for the purposes of the Income-tax Act. Section 115- O provides for levy of Dividend Distribution Tax(DDT) on the company at the time when company dist...

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Vodafone pays over USD 400 mn more to buy Essar's 33 per cent stake

Income Tax - Ending year-long battle, UK-based Vodafone has agreed to pay USD 400 million more to its Indian partner Essar for buying its 33 percent stake in the joint venture Vodafone-Essar. With this, Essar closed the deal to sell its 33 percent stake at USD 5.46 billion as against USD 5 billion decided earlier. ...

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After Vodafone verdict IT department will investigate more cross-border mergers involving Indian assets

Income Tax - The government will look into more cross-border mergers involving Indian assets, like the Vodafone-Hutchison deal, after the Bombay High Court on Wednesday rejected UK-based Vodafone's petition against the imposition of tax by authorities here....

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Reminder : Person receiving income subject to withholding tax is required to obtain Permanent Account Number (PAN)

Income Tax - The Finance (No.2) Act of 2009 introduced section 206AA under the Income Tax Act, 1961 (the ITA) to provide that any person who is entitled to receive any sum or income or amount, on which tax is to be withheld under the ITA shall furnish PAN to the person responsible for withholding of tax. In case PAN is not furnished, minimum withholdi...

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Replacement of dividend distribution tax with withholding tax to boost business

Income Tax - The cost of doing business in India could come down if the dividend distribution tax (DDT) levied on foreign shareholders is replaced with a withholding tax as under the current system, apex chamber Ficci has said. According to the chamber, foreign shareholders are unable to claim credit in the home country for DDT paid in India, resultin...

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Section 195 not applies to payment not in the nature of FTS to Non-Resident not having PE in India

Forum Projects Pvt. Ltd. Vs DCIT (ITAT Kolkata) - Assessee was not having any permanent establishment in India and was providing the service only from Singapore and therefore the provisions of Section 195 of the Act are not applicable....

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Withholding certificate at a low tax rate cannot be rejected for demand due to pending rectification applications

Jones LNG Lasalle Property Consultants (India) Private Limited Vs DCIT (Delhi High Court) - Withholding certificate at a low tax rate rejected for huge outstanding demand, although same were due to pending rectification applications...

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TDS on interest paid to China Development Bank- HC dismisses Stay Application

Tata Teleservices Limited Vs CIT (Delhi High Court) - Disputed demand has arisen for failure of Tata Teleservices to deduct tax at source on interest payments made to China Development Bank...

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Reasonable time limit for issue of notice u/s 201(1)/201(1A) is 4 years

Adabala Manmohan Vs ITO (ITAT Visakhapatnam) - ITAT held that Reasonable time limit for issue of notice u/s 201(1)/201(1A) is 4 years and Assessee cannot be taxed for non-deduction of TDS U/s. 195  if non-resident discharged obligation with respect to payment of capital gains tax...

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TDS not deductible on payment by Deolitte India to Deolitte UK for global brand/communication/technology/knowledge

Deloitte Haskins & Sells LLP Vs DCIT (ITAT Mumbai) - Payments made for global brand/communication/technology/knowledge cannot be treated as Royalty as per Article 13(3) of India-UK DTAA...

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CBDT notifies New Form 15E and rule 29BA

Notification No. 18/2021-Income Tax/G.S.R. 194(E) - (16/03/2021) - CBDT vide notification No. 18/2021-Income Tax, Dated: March 16, 2021 inserted new rule 29BA. Application for grant of certificate for determination of appropriate proportion of sum (other than Salary), payable to non-resident, chargeable in case of the recipients and also released new FORM No. 15E &...

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S. 40(a)(i) Tax Withholding on ‘Other sum chargeable’ of non residents

F.No.500/39/2015 (US FT & TR-V) - (26/10/2016) - For the purpose of making disallowance of other sums chargeable under Section 40(a)(i) of the Income-tax Act, 1961, in the case of non-residents, the appropriate portion of the sum chargeable to tax under the Act, ie, income component therein shall form the basis of such disallowance....

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Relaxation from deduction of tax at higher rate U/s. 206AA

Notification No. 53/2016-Income Tax - (24/06/2016) - 37BC. Relaxation from deduction of tax at higher rate under section 206AA.– (1) In the case of a non-resident, not being a company, or a foreign company and not having PAN the provisions of section 206AA shall not apply in respect of payments in the nature of interest, royalty, fees for technical ...

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CBDT relaxes conditions for furnishing of Form 15CA & Form 15CB

Notification No. 93/2015 - Income Tax - (16/12/2015) - Notification No. 93/2015 - Income Tax G.S.R. 978(E) dated 16th December, 2015 A CA certificate in Form No. 15CB will be required to be furnished only in respect of such payments made to non-residents which are chargeable to tax and the amount of payment during the year exceeds Rs. 5 lakh. No Form 15...

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Recent Posts in "Withholding tax"

Section 195 not applies to payment not in the nature of FTS to Non-Resident not having PE in India

Forum Projects Pvt. Ltd. Vs DCIT (ITAT Kolkata)

Assessee was not having any permanent establishment in India and was providing the service only from Singapore and therefore the provisions of Section 195 of the Act are not applicable....

Read More

Withholding certificate at a low tax rate cannot be rejected for demand due to pending rectification applications

Jones LNG Lasalle Property Consultants (India) Private Limited Vs DCIT (Delhi High Court)

Withholding certificate at a low tax rate rejected for huge outstanding demand, although same were due to pending rectification applications...

Read More

TDS on interest paid to China Development Bank- HC dismisses Stay Application

Tata Teleservices Limited Vs CIT (Delhi High Court)

Disputed demand has arisen for failure of Tata Teleservices to deduct tax at source on interest payments made to China Development Bank...

Read More

Reasonable time limit for issue of notice u/s 201(1)/201(1A) is 4 years

Adabala Manmohan Vs ITO (ITAT Visakhapatnam)

ITAT held that Reasonable time limit for issue of notice u/s 201(1)/201(1A) is 4 years and Assessee cannot be taxed for non-deduction of TDS U/s. 195  if non-resident discharged obligation with respect to payment of capital gains tax...

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TDS not deductible on payment by Deolitte India to Deolitte UK for global brand/communication/technology/knowledge

Deloitte Haskins & Sells LLP Vs DCIT (ITAT Mumbai)

Payments made for global brand/communication/technology/knowledge cannot be treated as Royalty as per Article 13(3) of India-UK DTAA...

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TDS Consequence on non-furnishing of PAN by non-resident to Deductor

Article explains Consequence on non-furnishing of PAN by non-resident to Deductor who is required to deduct or withhold tax on income of non-resident. Article explains in such cases Rate of Tax Deduction, Rate in case of interest, royalty, fees for technical services, dividend and payments on transfer of any capital assets, TDS rate if P...

Read More
Posted Under: Income Tax |

TDS u/s 195 not deductible on mere reimbursement

Flipkart Internet Private Limited Vs DCIT (Karnataka High Court)

TDS not deductible u/s 195 as the petitioner only seeks to make payment to Walmart Inc. of its payment to the seconded employee which is stated to be by way of reimbursement...

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Countrywise Withholding Tax rates as per IT Act vis a vis Tax Treaties/DTAA

Certain income of non-resident, inter-alia, dividend, interest, royalty or fees for technical services shall be taxable as per the rates prescribed under the Income-tax Act or as per the rates prescribed under the DTAAs, whichever is more beneficial to such non-resident. ...

Read More
Posted Under: Income Tax |

Countrywise Withholding tax rates / Chart as per DTAA

Country wise Withholding tax rate on Dividend (not being covered under Section 115-O), Interest, Royalty and Fee for Technical Services ...

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Posted Under: Income Tax |

TDS not deductible on business profit of non-resident in absence of PE in India

Apurva Goswami Vs DDIT (International Taxation) (ITAT Delhi)

Merely because a person has not deducted tax at source from a remittance abroad, it cannot be inferred that the person making a remittance has committed a failure in discharging his tax withholding obligations because such obligations come into existence only when recipient has a tax liability in India....

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