Payment to foreign customer

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Rajkumar Gutti (Querist)
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12 June 2026 For AI subscription paid to foreign customer in In INR.
Can liable for tds payment. If yes what percentage and which section

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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14 June 2026 TDS, if applicable, would be under Section 195, not under domestic TDS sections like 194J. The rate is not fixed and depends on whether the AI subscription payment is characterized as royalty/FTS and on the applicable DTAA. Many standard SaaS/AI subscriptions may not require TDS if the income is not taxable in India, though GST under RCM generally applies.

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