29 October 2008
Circular No 786 dt 7-2-2000 says if payment is made to non resident for rendering services out side india no tax is to be deducted u/s195. If 786 do not apply to your case Circular No 728 dt 30-10-1995 attracts which says if the foreign country has a DTAA with India,tax should be deducted at the rate provided in the Finance act of the relevant year or at the rate provided in DTAA whichever is more beneficial to you.