Author Topic: FTS from Hong Kong  (Read 12710 times)

adit11983

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FTS from Hong Kong
« on: August 19, 2015, 11:52:26 AM »
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

adit11983

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Re: FTS from Hong Kong
« Reply #1 on: August 22, 2015, 06:38:53 PM »
Please reply

pawansingla

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Re: FTS from Hong Kong
« Reply #2 on: August 25, 2015, 01:43:23 PM »
go for 115A or you can also file application u/s 195(2) with ACIT/ITO international taxation for more clarity.

adit11983

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Re: FTS from Hong Kong
« Reply #3 on: August 25, 2015, 01:58:54 PM »
Thanks sir...but the moot question is 195 is the principal section for TDS how can we go for 115 section

pawansingla

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Re: FTS from Hong Kong
« Reply #4 on: August 25, 2015, 02:02:15 PM »
SECTION 195 IS ONLY CHARGING SECTION.IT DOES NOT PRESCRIBES THE RATES.GIVE ME SOME TIME,I  WILL REPLY IN DETAIL.

pawansingla

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Re: FTS from Hong Kong
« Reply #5 on: August 25, 2015, 08:32:20 PM »
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.

adit11983

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Re: FTS from Hong Kong
« Reply #6 on: August 26, 2015, 10:47:31 AM »
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. 

camanojgupta

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Re: FTS from Hong Kong
« Reply #7 on: September 15, 2015, 11:03:56 AM »
pl read PART II FA2015 carefully. Entry (D) provides that TDS sholud be at 10pc