FTS from Hong Kong

[adit11983]

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]

Please reply

[pawansingla]

go for 115A or you can also file application u/s 195(2) with ACIT/ITO international taxation for more clarity.

[adit11983]

Thanks sir...but the moot question is 195 is the principal section for TDS how can we go for 115 section

[pawansingla]

SECTION 195 IS ONLY CHARGING SECTION.IT DOES NOT PRESCRIBES THE RATES.GIVE ME SOME TIME,I  WILL REPLY IN DETAIL.

[pawansingla]

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]

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]

pl read PART II FA2015 carefully. Entry (D) provides that TDS sholud be at 10pc