Tds and gst on foreign outward remittance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2018 Am I required to deduct TDS when making a payment to a US based content writer (foreign national)? The payment is via Paypal (linked to CC or bank account).

Is the US national (receiving the payment) liable to pay Indian taxes / GST? How is he supposed to recover the TDS, if its applicable?

CA Anita Bhadra

CA Anita Bhadra (Expert)
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27 November 2018 Yes
As per sec 195 of IT Tax Act - Any person responsible for paying to a non resident (company or non company) any sum which is chargeable under the provisions of the Act, shall at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of cheque or draft or by any other mode , whichever is earlier, deduct income –tax thereon at the rate in force.