TDS on payment of Event fees to foreign Party

This query is : Resolved

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This discussion clarifies whether an LLP needs to deduct Tax Deducted at Source (TDS) when paying event management fees to a foreign entity, specifically a Dubai LLC, for an event held in India. The key considerations involve determining if the income is taxable in India and checking the foreign party's tax status. For services rendered in India, TDS is generally applicable, with a suggested deduction rate of 20% under professional fees.

Piyush

Piyush (Querist)
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07 May 2025 LLP (carries out Event management) makes payment towards event Fees to foreign Party (INR amounting to approx 4.80L)

to make the payment Form 15CA is required

Whether LLP is liable to deduct TDS on such payment?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 May 2025 Check the income is taxable in india, if yes deduct TDS otherwise it's not required.
Check tax status of foreign party and where the event is held.

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Piyush

Piyush (Querist)
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08 May 2025 Foreign party is LLC in Dubai. Event was held in India. LLP to make payment towards event management fees to Dubai LLC
whether LLP is liable to deduct TDS? Amount of bill in INR is less than 5 Lacs

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 May 2025 Event held in India so TDS applicable.

Piyush

Piyush (Querist)
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08 May 2025 How will the rate be determined when payment is done to Dubai Co (LLC) for the said service.
What will be the rate & under which section the same needs to be deducted ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 May 2025 Deduct 20% as professional fees.

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