{"id":30164,"date":"2022-10-18T05:40:12","date_gmt":"2022-10-18T00:10:12","guid":{"rendered":"https:\/\/itatonline.org\/digest\/?post_type=qa&#038;p=30164"},"modified":"2022-10-18T05:40:12","modified_gmt":"2022-10-18T00:10:12","slug":"how-a-foreign-company-will-deposit-tds-in-india","status":"publish","type":"qa","link":"https:\/\/itatonline.org\/digest\/qa\/how-a-foreign-company-will-deposit-tds-in-india\/","title":{"rendered":"How a Foreign Company will deposit TDS in India?"},"content":{"rendered":"<p style=\"text-align: center;\"><strong>Fact of Case:<\/strong><\/p>\n<p>A foreign company (Germany) sold shares of an Indian company held by it to another foreign company (Germany).<\/p>\n<p style=\"text-align: center;\"><strong>Applicable Provisions:<\/strong><\/p>\n<ul>\n<li>As per para 4 of <strong>Article 13<\/strong> of DTAA between India &amp; Germany &#8220;Gains from alienation of shares in a company which is a resident of the contracting state may be taxed in that state&#8221;.<\/li>\n<li><strong>Section 9(1)(i)<\/strong> considers the income to accrue or arise in India if all income accruing or arising, whether directly or indirectly, through or from any business connection in India&#8230; or <strong>through the transfer of a capital asset situated in India.\u00a0<\/strong><\/li>\n<li>All other conditions mentioned in Section 47 are also met.<\/li>\n<\/ul>\n<p>From the above-mentioned provisions we can conclude that the buying company is mandatory to deduct TDS while making the payment to the selling company.<\/p>\n<p style=\"text-align: center;\"><strong>Questions:<\/strong><\/p>\n<p><strong>Q 1:<\/strong> How company a foreign company will deposit the deducted TDS in India?<\/p>\n<p><strong>Q 2:<\/strong> Does deductor of TDS (foreign company) is mandatory to have TAN &amp; PAN to deposit TDS in India?<\/p>\n<p><strong>Q 3:<\/strong> Do both the foreign companies are mandatory to file ITR in India for the relevant FY?<\/p>\n<p><strong>Q 4: <\/strong>Applicable TDS rate will be 20% + Cess &amp; Surcharge since no rate specifically given for TDS anywhere in the Act or Tax Treaty between two countries?<\/p>\n<p><strong>Q 5:<\/strong> Do deductee also required to apply for PAN in India?<\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><strong>Thanks in advance for the reply<\/strong><\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[33],"qa_category":[23],"qa_tag":[710,211],"class_list":["post-30164","qa","type-qa","status-publish","hentry","qa_expert-advocate-shashi-ashok-bekal","qa_category-income-tax","qa_tag-foreign-company","qa_tag-tax-deduction-at-source"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/30164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=30164"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=30164"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=30164"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=30164"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=30164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}