Dear Sir's
My client has got FTS from Hong Kong ...we dont have a DTAA with Hong Kong, So should we deduct tds under section 195 or under section 115 A as rates under 115 A are lower.( we have a PAN No and NO PE Declaration)
Kindly Suggest
Please reply
go for 115A or you can also file application u/s 195(2) with ACIT/ITO international taxation for more clarity.
Thanks sir...but the moot question is 195 is the principal section for TDS how can we go for 115 section
SECTION 195 IS ONLY CHARGING SECTION.IT DOES NOT PRESCRIBES THE RATES.GIVE ME SOME TIME,I WILL REPLY IN DETAIL.
In a non-DTA country, 115A is the section whose rates will be applicable. So he is to be taxed as per 115A. S 195, as such, does not specify rates. The rates have to be decided based on taxability.
Thanks alot for your precious time Mr Singla ...just some confusion...Part II With heading " Rates For Deduction of Tax At Source in Certain Cases" does mention rates for section 193,194,194 A, 194AB, 194BB, 194D, and 195 ...so with my limited knowledge of Tax, i think section 195 is also prescribing rates. Any how i am issuing 15Cb as per your guidance.
pl read PART II FA2015 carefully. Entry (D) provides that TDS sholud be at 10pc