TDS Applicable to Overseas Payments
This query is : Resolved
05 January 2023
Dear Experts,
Can we have to deduct TDS on payment to overseas vendor ?? If yes , is there any threshold limit.
Can we have to deduct TDS on payment to overseas vendor ?? If yes , is there any threshold limit.
Dhirajlal Rambhia
(Expert)
05 January 2023
Any person who makes any payment (other than salary or interest referred to in sections 194LB, 194LC and 194LD) taxable in India to a non-resident must deduct tax under this section.
The payer, one who pays the NRI or remits the payment, can be a resident or a non-resident, an individual, Hindu Undivided Families (HUFs), partnership firms, other NRIs, foreign companies, or an artificial juridical person.
There is no threshold limit to deduct TDS under Section 195. However, the payer must deduct tax only when the payment made to a non-resident is taxable in India.
The payer, one who pays the NRI or remits the payment, can be a resident or a non-resident, an individual, Hindu Undivided Families (HUFs), partnership firms, other NRIs, foreign companies, or an artificial juridical person.
There is no threshold limit to deduct TDS under Section 195. However, the payer must deduct tax only when the payment made to a non-resident is taxable in India.
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