Tds on sponsorship payment to foreign embassy in india ?

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anand (Querist)
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12 May 2017 Dear Experts,

Is TDS required to be deducted on sponsorship payment to foreign embassy in India? Kindly respond with brief reasoning of the relevant section/provision?

Thanks in advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 May 2017 Any payment made to embassy or high commission of a foreign country in India is not liable to TDS as it is not governed by the provisions of the Income-tax Act, 1961.

anand

anand (Querist)
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12 May 2017 Thanks for the reply sir..can you please provide the reasoning/relevant provision of Income Tax Act,1961

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 May 2017 Foreign embassy is part of foreign Govt. Foreign Govt is not a taxable person as per Income tax Act.

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