Tuesday, April 15, 2014

Re: [aaykarbhavan] Urgent Query on Sec 195



Good response from members and immediate reply .keep it up for Group.
C A Shah D J

On Tuesday, 15 April 2014 7:35 AM, "Tejas.Shah@in.ey.com" <Tejas.Shah@in.ey.com> wrote:
 
The income on reinsurance is a business receipt for the foreign reinsurer. In the absence of a PE, there should be no requirement to withhold taxes. However, you may need to ensure foreign reinsurer has a valid TRC [S. 90(4)/ (5)].

Best regards,
Tejas




From: "Vivek Sinha" <vs@mvco.in>
To: aaykarbhavan@yahoogroups.com,
Date: 15-04-2014 17:47
Subject: RE: [aaykarbhavan] Urgent Query on Sec 195
Sent by: aaykarbhavan@yahoogroups.com




 
Yes the section 195 shall be attracted. Further one need to keep in mind DTAA with the country in which the foreign company is situate with respect to applicability of rates….
 
Thanks & Regards

Vivek Sinha

(Partner)
M  V  C  O     CONSULTING . LAW . TAX
Mukun  Vivek  &  Company
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Delhi-110092
Telephone:  011-42147218
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Website:
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From: aaykarbhavan@yahoogroups.com [mailto:aaykarbhavan@yahoogroups.com] On Behalf Of CA Rupak Agarwal
Sent:
15 April 2014 15:36
To:
aaykarbhavan@yahoogroups.com
Subject:
[aaykarbhavan] Urgent Query on Sec 195
 
 
Dear Members,
 
A life insurance company in India wants to pay reinsurance premium to another insurance company who is a foreign company and does not have permanent establishment in India.
 
My question is whether TDS u/s 195 will be applicable on such expenditure ????
 
CA Rupak Agarwal
B.Com, FCA, LL.B.
Chartered Accountants
538 ka/1552 Triveni Nagar II
Lucknow-226020
Ph: 0522-2756646, 9839125100



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