ADIL M. SAIYED (article) (57 Points)
09 May 2013
Charitable School trust makes payment to non resident for registration of student under an educational organisation- is the trust liable to deduct tds u/s195? How will the income of non resident will be taxed???
CA Kedar Sakhardande
(Proprietor)
(942 Points)
Replied 09 May 2013
Yes TDS has to be deducted under section 195
and the non ressident has to file return in India (it is compulsory)
regards
IA & Risk expert
(Freelancer)
(198 Points)
Replied 10 May 2013
what i understand is that the trust is Indian & the student is NR.
Why does the trust have to deduct TDS in this case??
ANJANI KHETERPAL
(PARTNER)
(21 Points)
Replied 10 May 2013
ADIL M. SAIYED
(article)
(57 Points)
Replied 10 May 2013
the education board is outside india while the trust is in india providing education in india to resident as wel as non resident student but only in india.....the education board is UK based..
IA & Risk expert
(Freelancer)
(198 Points)
Replied 10 May 2013
from what u hAve shared, i understand that A trust in India is making remittances to a NR.
In this case it will be covered by the DTAA of UK(if any) & deducting of TDS will be compulsary.
The applicable rate depends on the nature of contract b/w the Trust & the NR org (Commission/ contract)
IA & Risk expert
(Freelancer)
(198 Points)
Replied 10 May 2013
TAx incidence arises because the income is accruing in India.
IA & Risk expert
(Freelancer)
(198 Points)
Replied 10 May 2013
Inocme has accrued in india hence taxable
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