Tds for 195

This query is : Resolved

R.BHUVANESWARI.

R.BHUVANESWARI. (Querist)
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09 February 2023 Sir

In IT concern , we pay to foreign company for server charges . need to dedcut tds ?
if yes 195sec ?
rate & section pls explain

Indira

Indira (Expert)
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09 February 2023 Hi

Section 195 of the Income Tax Act, 1961 specifies the TDS provision in the case of an individual making a payment by way of interest or any other amount other than salary to an NRI or a foreign company.

TDS is deducted at either of the following rates, whichever is more beneficial to the payee:

Rates as per the Finance Act of the given year
Rates contained in the Double Taxation Avoidance Agreement (DTAA) between India and the country of residence of such non-resident
Note that the rates given under the Finance Act are to be increased by the applicable surcharge and education cess of 4%. However, surcharge and cess are not required to be added to the rates given under DTAA.

Thanks