Payment to NR

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This discussion addresses TDS implications for payments made to LinkedIn Singapore, a non-resident entity without a Permanent Establishment in India. While Equalisation Levy is generally not applicable for payments below ₹1 lakh, the core question is whether TDS under Section 195 is required when auditors might query payments to non-residents. The consensus suggests TDS is not applicable if the income is not taxable in India, as is the case with advertising services provided outside India.

Parvinder Kaur

Parvinder Kaur (Querist)

27 September 2023 Dear Experts,
We have made payments to Linkdlen Singapore for providing platform for posting jobs of our company. Linkdeln does not have PE in india. Please provide us with a solution on TDS deduction since the amount remitted is less than 1 lakh rupees in a financial year. As per law, I think there is no applicability of equilisation levy. Please provide a solution on this.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 September 2023 You are right no equalization levy applicable.
TDS also not applicable.

Parvinder Kaur

Parvinder Kaur (Querist)

27 September 2023 Then what is the implication sir. What if auditors raised query that its a payment to NR. Do we had to deduct tax u/s 195.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 September 2023 TDS not applicable when the income is not taxable in India.
In this case being advertisement outside India equilisation levy applicable. But as payment is less than 1 lac equilisation levy not applicable.

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