25 May 2018
Its normal provision as per section 195, any income paid or credited to non resident its covered under TDS provisions also provided the case law for your reference
DIT v. Sahara India Financial Corporation Ltd. (2010) 321 ITR 459 (Del)]
Sponsorship of an event is not royalty Sponsorship for popular sports events is often undertaken with the object of sales promotion especially when the title of the tournament itself is in the name of the sponsors and use of the copyrighted name is a condition for payment. But such condition to make payment cannot be of royalty, so as to require TDS at the time of payment under the terms of DTAA between India and Canada
CAclubindia
