TDS on Rent Paid to Non Resident

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Sanjay Govil (Querist)
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19 June 2008 Hello fellow professionals,

I wish to know whether foreign remittance towards stall rent for participation in an International Trade Fair abroad attracts the provisions of TDS or not and the reasons for the same.

Regards

Sanjay Govil

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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19 June 2008 In case of Non Resident, income taxable in India as per section 5(2) of the I T Act are as under:

the total income of any previous year of a person who is a non-resident includes all income from whatever source derived which
(a) is received or is deemed to be received in India in such year by or on behalf of such person ; or
(b) accrues or arises or is deemed to accrue or arise to him in India during such year.

So by looking at the question it can be assume that the source of income is outside India even though payment made from Indai. U/s 9 It can not be treated as Income deemed to accrue or arise in India.

So it would not be taxable in India and no TDS need to be deducted.