11 August 2009
It depends on the country to which you are paying.
Step 1 : Find out the DTAA (Double taxation avoidance agreement is available with that country). If avilabe based on that you have to deduct tax at source.
Step 2 : If dtaa is not there, then section 195 will be applicable. Tax has to be deducted at the rates specified under section 195.
CAclubindia
