TDS applicability on Outward Remittance

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This discussion explores the applicability of Tax Deducted at Source (TDS) on outward remittances made by an Indian company to Refinitiv Ltd, a UK-based non-resident, for subscription services. The company has provided a Tax Residency Certificate (TRC), No PE declaration, and Form 10F. The advice given suggests TDS is not applicable, referencing Section 195 of the Income Tax Act for guidance.

AJAY VEDPATHAK

AJAY VEDPATHAK (Querist)
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22 February 2024 We make use of the World-Check Information Products subscription service as a corporate client of Refinitiv Ltd. And in order to pay for these services, we need to do Outward Remittance to UK.

Refinitiv Ltd, a resident of the United Kingdom, does not have a fixed base or permanent establishment in India for the purpose of conducting business, making it a non-resident under Section 6 of the Act.

They have provided us TRC, No PE declaration, and Form 10F. In that would like your advice on whether or not TDS is applicable.

Regards,