Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 October 2013 is payment made by an educational society for advertising in a newspaper in Khatmandu(nepal) liable to TDS.

Padmaja CA

Padmaja CA (Expert)
Follow

24 October 2013 Yes

Educational Institution Must Liable to TDS

Querist : Anonymous

Querist : Anonymous (Querist)

24 October 2013 under what section and what percentage of TDS is liable to be deducted.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

27 July 2025 For payment made by an **educational society** for **advertising in a newspaper in Kathmandu (Nepal)**, here’s the TDS applicability:

---

### 1. **Is TDS applicable?**

* Yes, TDS is applicable even if the payment is made to a foreign entity (Nepal).
* Since the payment is for **advertising services**, it falls under **Fees for Technical Services** or **Professional fees** for tax purposes.
* The payer (educational society) is liable to deduct TDS under **Section 195** (Payments to Non-Residents).

---

### 2. **Which section applies?**

* **Section 195** of the Income Tax Act applies for all payments to non-residents.
* The exact rate depends on:

* The nature of payment (advertising is considered as business income or technical services).
* The Double Taxation Avoidance Agreement (DTAA) between India and Nepal.

---

### 3. **What rate of TDS applies?**

* Under the India-Nepal DTAA, the tax rate for business profits or fees for technical services is generally **10%** (subject to conditions).
* If no DTAA benefit is claimed, the **domestic rate** could be higher (usually 10%-30% depending on classification).
* Usually, **10% TDS** is deducted on technical service fees or business income payments under DTAA.

---

### Summary:

| Factor | Details |
| -------------------- | --------------------------------------------------------- |
| Payment type | Advertising charges (business income / technical service) |
| Payee | Newspaper in Kathmandu, Nepal (non-resident) |
| Applicable section | Section 195 |
| TDS rate under DTAA | Usually 10% |
| Without DTAA benefit | Higher domestic rate (20-30%) |

---

**Important:**
The educational society should obtain a **Tax Residency Certificate (TRC)** from the Nepalese newspaper to avail the DTAA benefits and deduct TDS accordingly.

---

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

DHANASHRI KARMARKAR

CA Aakarsh Jain

Michael & Co.

divakar podaturu

sachingurav

Subscribe Now

Tds

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA