TDS FOR EMBASSY
This query is : Resolved
05 May 2009
Dear Friends
Is there any notification or circular regarding the examption on TDS for embassy
pls help
Regards
pradeep
Is there any notification or circular regarding the examption on TDS for embassy
pls help
Regards
pradeep
CA Tilak Raj Sharma
(Expert)
05 May 2009
I don't see any such exemption.
27 July 2025
Yes, embassies are generally exempt from TDS under the Income Tax Act due to their diplomatic status.
**Key points:**
* Under **Section 10(23)(iv)** of the Income Tax Act, income of a foreign diplomatic mission or consulate is exempt from tax.
* Further, as per **Article 19 of the Vienna Convention on Diplomatic Relations**, diplomatic missions are generally exempt from direct taxes in the host country.
* CBDT notifications and circulars recognize this exemption and TDS is **not applicable** on payments made to embassies or their official accounts, provided they produce valid documentary evidence of their diplomatic status.
* However, if the embassy is receiving payments for commercial or business activities, TDS may apply.
**No separate specific notification on TDS exemption for embassies**, but exemption flows from these legal provisions.
---
**In practice:**
* Request a **certificate of exemption or diplomatic status** from the embassy.
* Keep documentary proof on record.
* TDS should not be deducted on payments to embassies on account of their exempt status.
---
If you want, I can help draft a letter or prepare a checklist for exemption documentation. Would you like that?
**Key points:**
* Under **Section 10(23)(iv)** of the Income Tax Act, income of a foreign diplomatic mission or consulate is exempt from tax.
* Further, as per **Article 19 of the Vienna Convention on Diplomatic Relations**, diplomatic missions are generally exempt from direct taxes in the host country.
* CBDT notifications and circulars recognize this exemption and TDS is **not applicable** on payments made to embassies or their official accounts, provided they produce valid documentary evidence of their diplomatic status.
* However, if the embassy is receiving payments for commercial or business activities, TDS may apply.
**No separate specific notification on TDS exemption for embassies**, but exemption flows from these legal provisions.
---
**In practice:**
* Request a **certificate of exemption or diplomatic status** from the embassy.
* Keep documentary proof on record.
* TDS should not be deducted on payments to embassies on account of their exempt status.
---
If you want, I can help draft a letter or prepare a checklist for exemption documentation. Would you like that?
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