The entire work is executed outside india, and the engineering company has no place of business, agent, or presence in india. The indian company remits euro 100,000 without. Two key components of international taxation that companies operating in or dealing with india must understand are withholding tax and transfer pricing.
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As per india france dtaa, withholding tax rate applicable is 10%.
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Income from units income from foreign currency bonds or shares of indian company income of foreign institutional investors from securities international businesses: Whether you earn royalty, dividends, interest or fees for technical services, the rate of tds shall not exceed. Learn about rates, dtaa benefits, compliance procedures, and refund claims under.
