The place of transaction is not the criteria for determination of application of sec 195
It is the residential Status that matters(residential status of receiver)
As per section 6(3), an Indian company is always resident in India. A foreign company is resident in India only if, during the previous year, control and management of its affairs is situated wholly in India.
In your case as the receiver of the payment is branch of Indian company, it is clearly evident that it is Resident
So Section 195 of income tax act is not applicable as it is payment to Resident
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