Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or any other sum chargeable under the provisions of this act shall at the time of credit of such income to the account of payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income tax thereon at the rates in force."
The tax shall be deducted at the rate or rates in
force as defined u/s 2(37A) i.e. the rate or rates of income-tax specified in this behalf in the Finance Act of the relevant year or the rate or rates of income-tax specified in an agreement entered into or notified by Central Government u/s 90 and 90A.
Ø TDS is not required to be deducted on service tax value in case of import of services.
Ø If DTAA prevails than the Tax deducted can not exceed tax rates mentioned in the DTAA. |
