HomeDirect TaxTDS on Payments to Non-Residents Can’t Exceed 10% Under DTAA: Supreme Court

TDS on Payments to Non-Residents Can’t Exceed 10% Under DTAA: Supreme Court

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The Supreme Court has held that tax deducted at source (TDS) on payments made to non-resident entities cannot exceed the rate prescribed under the applicable Double Taxation Avoidance Agreement (DTAA)—typically 10% in many treaties. Any attempt by the income tax department to demand TDS at a higher rate, including 20% under domestic law, would be…

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Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.

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