Section 195

This query is : Open

CA Aditya Shah (Querist)
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24 December 2020 If a company is making Demurrage payment to a company based in Singapore, will it have to deduct TDS?

Secondly, if a company is making professional services payment to Singapore international arbitration centre, will it have to deduct TDS?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 December 2020 TDS not applicable as demurrage charge incurred outside India.
No TDS applicable on international arbitration center.

CA Aditya Shah

CA Aditya Shah (Querist)
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26 December 2020 This article states that TDS is applicable. Therefore the ambiguity:

https://taxguru.in/income-tax/applicability-tds-government-company-international-arbitration.html

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 December 2020 Exception rules not applicable for TDS.

CA Aditya Shah

CA Aditya Shah (Querist)
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29 December 2020 Can you please explain?

As per Section 195:
TDS shall be deducted at DTAA rates or rates in force whichever is lower on any payment made to Non resident or foreign company.

Then why are you saying TDS is not applicable.?