09 July 2015
We running an educational institute and We have to make the payment to a foreign faculty. Kindly let me know whether we need to deduct the TDS on payment to foreign faculty, if yes at what rate. is there any way we can avoid payment of TDS on above payment. Kindly explain.
09 July 2015
Since it is a payment to a Non-Resident, TDS is applicable for sure. Read section 195 of the Income Tax Act, 1961. Also refer DTAA(Double Taxation Avoidance Agreement) with India and with the country from which the Non-Resident resides.