Sec 195- Taxation of non residents
This query is : Resolved
13 November 2009
Whether training charges paid to non resident comes under Sec195 .Please mention the matters covering under the industrial policies for Fees for technical Services.
13 November 2009
Sec 195 (i) covers payment of any other income to non-resident which is not covered under 195(a) to 195(h).
13 November 2009
See the link for meaning of fees for technical services as given in Sec 9
https://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20ACT/9.asp
Explanation 2 For the purposes of this clause, "fees for technical services" means any consideration (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient or consideration which would be income of the recipient chargeable under the head "Salaries".
https://www.incometaxindia.gov.in/Acts/INCOME%20TAX%20ACT/9.asp
Explanation 2 For the purposes of this clause, "fees for technical services" means any consideration (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient or consideration which would be income of the recipient chargeable under the head "Salaries".
27 November 2009
You can invoke the provisions of DTAA for the quantum of tax to be deducted. Usually this is under Royalties and technical Services. However, in some DTAAs it may come under Independent Personal Services (professional fees).
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