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Tds of non resident

TDS / TCS 1079 views 12 replies

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???

 

Replies (12)

is payment is made in india or outside india?

the organization where student is registered situated in India or outside?

Yes TDS has to be deducted under section 195

and the non ressident has to file return in India (it is compulsory)

regards

 

what i understand is that the trust is Indian & the student is NR.
Why does the trust have to deduct TDS in this case??
 

The tds u/s 195 will only be deducted if the sum chargeable to Income Tax in India.

And the querry is silent in this regard.

If the educational programme is conducted by an organisation out of India then no income is accruing or arising in India. So no tax is to be deducted. There is no income to the non resident.

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..

Education board is outside India, which means payment is made outside India to a NR.

Hence no income of the board is accure or arise in India, Hence trust is not liable to deduct TDS.

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)

Dear Khusboo,

Could you plz explain, why TDS deduction is mandatory in the  given case.

TAx incidence arises because the income is accruing in India.
 

Inocme has accrued in india hence taxable

how income is accured in India, i am not able to understand? could you through some light.


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