Reduction in rater of tax on income by way of Royalty and Fees for technical services in case of non-residents

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..... Question - What are the proposed in Finance Bill 2015 to reduce the hardship faced by the small entities in respect of income to royalty and fees for technical services ? - Reply By Admin TMI - The Reply = Reduction in rate of tax on Income by way of Royalty and Fees for technical services in case of non-residents The existing provisions of section 115A of the Act provide that in case of .....

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..... a 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 Government or an Indian concern after 31.03.1976, and which is not effectively connected with permanent establishment, if any, of the non-resident in India, tax shall be levied at the rate of 25% on the gross amount of such income. This .....

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..... rate of 25% was provided by Finance Act, 2013. In order to reduce the hardship faced by small entities due to high rate of tax of 25%, it is proposed to amend the Act to reduce the rate of tax provided under section 115A on royalty and FTS payments made to non-residents to 10%. This amendment will take effect from 1st April, 2016 and will, accordingly, apply in relation to the assess .....

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..... ment year 2016-17 and subsequent assessment years. - Reduction in rater of tax on income by way of Royalty and Fees for technical services in case of non-residents - Query Started By: - Admin TMI Dated:- 28-2-2015 Income Tax - Got 1 Reply - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - t .....

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..... axmanagementindia.com - TMI - TaxTMI - TMITax .....

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