TDS on Royalty, Income Tax

[kamal mall]

As per amendment made in section 115A now in the case of non- resident taxpayer, where the total income includes any income by way of royalty and fees for technical services (FTS) received by such non- resident from govt. or any Indian company will deduct 10 % TDS instead of 25 %.

Sir my question :- Since non- resident don’t have PAN of Indian then section 206AA will be applicable so 20% TDS will be deduct. So as per my understanding, in any case 20% TDS will be deduct that means this provision is not so beneficial for NR.

Posts / Replies

[RAMA KRISHNA KNVS]

YOU ARE ABSOLUTELY CORRECT. Ultimately indian entities has to gross up the TDS part and pay the foreign service vendor due to low negotiating power.