Rate of deduction from income of non-residents under section 56

 Rate of deduction from income of non-residents

under section 56

SL.

No

Description of services or payments Rate of

deduction

of tax

1 Advisory or consultancy service 20%

2 Pre-shipment inspection service 20%

3 Professional service, technical services,

technical know-how or technical

assistance

20%

4 Architecture, interior design or landscape

design, fashion design or process design

20%

5 Certification, rating etc. 20%

6 Charge or rent for satellite, airtime or

frequency, rent for channel broadcast

20%

7 Legal service 20%

8 Management service including event

management

20%

9 Commission 20%

10 Royalty, license fee or payments related

to intangibles

20%

11 Interest 20%

12 Advertisement broadcasting 20%

13 Advertisement making or Digital

marketing

15%

14 Air transport or water transport not being

the carrying services mentioned in

sections 102 or 103A

7.5%

171

SL.

No

Description of services or payments Rate of

deduction

of tax

15 Contractor or sub-contractor of

manufacturing, process or conversion,

civil work, construction, engineering or

works of similar nature

7.5%

16 Supplier 7.5%

17 Capital gain 15%

18 Insurance premium 10%

19 Rental of machinery, equipment etc. 15%

20 Dividend-

(a) company, fund and trust--

(b) any other person, not being a

company fund and trust --

20%

30%

21 Artist, singer or player 30%

22 Salary or remuneration 30%

23 Exploration or drilling in petroleum

operations

5.25%

24 Survey for coal, oil or gas exploration 5.25%

24A Fees, etc. of surveyors of general

insurance company

20%

25 Any service for making connectivity

between oil or gas field and its export

point

5.25%

26 Any payments against any services not

mentioned above

20%

27 Any other payments 30%.

172

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