Tds on itat - logistics membership fee
This query is : Resolved
16 July 2014
My Company has to pay Membership fee i.e. USD 330. Foreign Company Name is Asian Logistics Umbrella Group. Should we deduct tds on this amount.
please reply immediately.
please reply immediately.
16 July 2014
yes u/s 195 tds is deductible...................
27 July 2025
### TDS on Membership Fee to Foreign Entity (e.g., Logistics Association)
You asked whether TDS is applicable on a **membership fee (USD 330)** paid by an Indian company to a **foreign organization** (in this case, *Asian Logistics Umbrella Group*). Let's break it down:
---
### 🔹 1. **Applicability of TDS – Section 195**
As per **Section 195** of the Income Tax Act:
> *Any sum chargeable under the provisions of this Act* paid to a non-resident is subject to TDS.
So the **key test** is:
➡️ Is the **membership fee “chargeable to tax” in India**?
#### If **NOT chargeable to tax** in India:
→ **No TDS** is required.
You should obtain a **CA certificate in Form 15CB** and file **Form 15CA** before remitting.
#### If **chargeable to tax**:
→ TDS is applicable. Usually at **10% + surcharge + cess** (or lower as per DTAA).
---
### 🔹 2. **What kind of payment is this?**
* **Pure membership fee** for **general access**, directory listing, or participation in events (no services rendered or rights transferred):
✅ *Not chargeable to tax in India* — hence **no TDS**.
* **Fee for technical services**, consultancy, or access to proprietary resources/content:
🔺 Might be treated as **Fees for Technical Services (FTS)** — then **TDS u/s 195** applies.
---
### 🔹 3. **Is there a threshold or minimum limit for TDS under Section 195?**
> ❌ **No**, there is **no minimum threshold** under section 195.
Even **small payments (e.g. USD 330)** require analysis and possibly TDS or compliance via 15CA/15CB.
---
### ✅ **What You Should Do:**
1. **Assess the nature of the payment**:
* If it’s a **pure membership fee**, not linked to services or rights, likely **not taxable in India**.
2. **Obtain a CA Certificate (Form 15CB)** stating why TDS is not applicable.
3. **File Form 15CA** before remitting the amount (mandatory for foreign remittance).
---
### 🔖 Example Scenarios:
* ✅ *No TDS*: Paying a logistics membership fee to access newsletters, community, or networking benefits.
* 🔺 *TDS Required*: Fee gives access to backend systems, market analytics, proprietary tools (FTS).
---
### 🔚 Conclusion
For your case (USD 330 membership fee to a logistics association abroad), **TDS may not be required**, provided it is a **general membership** and **not for technical services**. But **Form 15CA/15CB** is still needed before remittance.
You asked whether TDS is applicable on a **membership fee (USD 330)** paid by an Indian company to a **foreign organization** (in this case, *Asian Logistics Umbrella Group*). Let's break it down:
---
### 🔹 1. **Applicability of TDS – Section 195**
As per **Section 195** of the Income Tax Act:
> *Any sum chargeable under the provisions of this Act* paid to a non-resident is subject to TDS.
So the **key test** is:
➡️ Is the **membership fee “chargeable to tax” in India**?
#### If **NOT chargeable to tax** in India:
→ **No TDS** is required.
You should obtain a **CA certificate in Form 15CB** and file **Form 15CA** before remitting.
#### If **chargeable to tax**:
→ TDS is applicable. Usually at **10% + surcharge + cess** (or lower as per DTAA).
---
### 🔹 2. **What kind of payment is this?**
* **Pure membership fee** for **general access**, directory listing, or participation in events (no services rendered or rights transferred):
✅ *Not chargeable to tax in India* — hence **no TDS**.
* **Fee for technical services**, consultancy, or access to proprietary resources/content:
🔺 Might be treated as **Fees for Technical Services (FTS)** — then **TDS u/s 195** applies.
---
### 🔹 3. **Is there a threshold or minimum limit for TDS under Section 195?**
> ❌ **No**, there is **no minimum threshold** under section 195.
Even **small payments (e.g. USD 330)** require analysis and possibly TDS or compliance via 15CA/15CB.
---
### ✅ **What You Should Do:**
1. **Assess the nature of the payment**:
* If it’s a **pure membership fee**, not linked to services or rights, likely **not taxable in India**.
2. **Obtain a CA Certificate (Form 15CB)** stating why TDS is not applicable.
3. **File Form 15CA** before remitting the amount (mandatory for foreign remittance).
---
### 🔖 Example Scenarios:
* ✅ *No TDS*: Paying a logistics membership fee to access newsletters, community, or networking benefits.
* 🔺 *TDS Required*: Fee gives access to backend systems, market analytics, proprietary tools (FTS).
---
### 🔚 Conclusion
For your case (USD 330 membership fee to a logistics association abroad), **TDS may not be required**, provided it is a **general membership** and **not for technical services**. But **Form 15CA/15CB** is still needed before remittance.
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