Payment to non resident

Save Share

This query is : Resolved

hitesh sharma (Querist)

09 August 2011 Our client has to make remittance to a Non Resident teacher of Australia for giving lectures in India. Now what is the rate of TDS on such payment.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

10 August 2011 The Rate of TDS is 10.3% .
It should be treated as fees for technical services.

Arihanth Jain

Arihanth Jain (Expert)

10 August 2011 Please also consider 'Article IV - Independent personal services' of the DTAA between India-Australia.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

10 August 2011 I feel that tax should be NIL if the situation is as per Article 20 of India -Australia Treaty.

ARTICLE XX - Professors and teachers - 1. Where a professor or teacher who is a resident of one of the Contracting States visits the other Contracting State for a period not exceeding two years for the
purpose of teaching or carrying out advanced study or research at a University college, school or other educational institution, any remuneration that person receives for such teaching, advanced study or research shall be exempt from tax in that other State to the extent to which such remuneration is, or upon the application of this Article will be, subject to tax in the first-mentioned State.
2. This Article shall not apply to remuneration which a professor or teacher receives for conducting research if the research is undertaken primarily for the private benefit of a specific person or persons.

Anuj
+91-9810106211
femaquery@gmail.com

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now