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Payment to Non-Resident u/s 195 of Income TAx Act

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Querist : Anonymous

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Querist : Anonymous (Querist)
21 February 2011 I am a company resident in India, which is
participting in an exhibition outside India. I am paying charges (rent) for the stall. Shall I (company) deduduct the Tax ?

21 February 2011 You have not mentyioned name of country, but assuming that india has DTAA with that country rent will not be taxable in India as pr DTAA and hence no need to withheld tax

25 February 2011 You must be obtaining other services from the vendor in foreign country, and hence the services together with hall rent should not be taxable in India provided the foreign Company doesn't have PE in India.


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