Tds for a foreign national

Gurpreet Singh (Director) (44 Points)

02 November 2017  

We have to hire an Australian national freelancer. For the purpose of this contract, he is not traveling to India at all nor does he has an established set-up in India.  India and Australia have a Double Taxation Avoidance Treaty for cases like this.

 

My question is about TDS applicable on his payment.

a. Do we need to deduct TDS @ 10%?
b. Is this particular case covered under double taxation avoidance treaty? Will the section 195 of Income tax Act be applicable or the treaty?