Diwakar Mishra (Accountant) (136 Points)
10 October 2011
An Indian university gives payment to Non-Resident as fellowship Fees. University has 2 years agreement for fellowship with Non-Resident.
Kindly suggest if TDS (Income tax) is atrach on fellowship payment ? if yes on which section ?
Thanks
diwakar.mishra84 @ yahoo.com
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 10 October 2011
Kindly confirm whether that Non resident has come to India or is staying in his home country.
Anuj
+91-9810106211
femaquery @ gmail.com
Diwakar Mishra
(Accountant)
(136 Points)
Replied 10 October 2011
They are 2 people. Citizen of Israel and USA. They will provide thier servies in our university for 3 years and they are living in our university campus in gurgaon.
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 10 October 2011
Article of Professors shall apply in the present case. I am attaching article 21 from India-Israel DTAA for your reference:-
"Remuneration received for education or scientific research by an individual who is or was immediately before visiting a Contracting State a resident of other Contracting State and who is present in the first-mentioned State for the purpose of scientific research or for teaching at an educational institution shall be exempt from tax in the first-mentioned State. This exemption shall be granted for a period that shall not exceed two years from the date on which the teacher or researcher first entered the first-mentioned State for the purpose of engaging in scientific research or for teaching. This Article shall not apply to income from research if such research is undertaken not in the public interest but primarily for the private benefit of a specific person or persons."
Anuj
+91-9810106211
femaquery @ gmail.com
Diwakar Mishra
(Accountant)
(136 Points)
Replied 10 October 2011
Sir ! Thank you very much for your reply...
suppose if DTAA is not applicable then can we treat this as a professional / consultancy fees u/s 194J and if it is i think they have to apply PAN in india because they became resident by virtue of more than stay of 182 days in previous year
Kindly suggest if it is ok as we make payment to them u/s 194J and not in 192B
THANKS
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 10 October 2011
Surely 194J shall come into picture once they become residents.
Anuj
+91-9810106211
femaquery @ gmail.com
CAclubindia
