Sec. 195 tds on payment to nri
Querist : Anonymous
BUSINESS CONNECTION OR PE OF THE NRI HAS TO BE CHECKED OR NOT ?
ANY FLOW CHART FOR TDS LIABILITY ON PAYMENT TO NRI ? PLS. PROVIDE IT.
EMAIL : PATELNCO@GMAIL.COM
TDS is to be deducted on any payment made to non resident which is chargeable to tax in India.
Accordingly, It is necessary that the income is Chargeable to tax in India for TDS.
Secondaly, if the Income is chargeable to tax in India then the provisions under DTAA have to be considered. If it is exempt as per DTAA provisions then TDS will not be there.
In most of the DTAA, Business Income is taxable if there is PE or business connection in India.
So, first of all, you will have to look at the DTAA with the country where you are remitting the funds.
Querist : Anonymous
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