Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
03 November 2014Friends/Seniors
We need to make a payment to a non resident towards technical fees. The non resident will provide technical services from its country to the Indian company in India. When will the requirement to deduct tax at source under section 195 arise -- ie if the income in the hands of NR is taxable in India or not.
Regards,
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 03 November 2014
Generally you need to deduct T.D.S @ 10.3%(Including cess) above and as you know there will be no prescribed limits for applicablility or Non applicability of T.D.S provisions for NRI, any payment whether it is above 30000 or not, liable to deduct T.D.S u/s.195. If such non-resident make an application to Assessing officer in Form 15C or 15D as case may be to Assessing officer that he would not subjected to Indian Income tax provisions then you need not to deduct T.D.S on payment made to NRI for technical consultancy services on submitting such certificate issued by assessing officer.
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