Tds on payment of visa fees to foreign government
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 June 2015
We have to pay Visa & other fees to a 100% owned company of Saudi Arabia Government.
1. Is TDS applicable on payment to foreign Government?
2. Is TDS applicable on Visa & other Fees?
1. Is TDS applicable on payment to foreign Government?
2. Is TDS applicable on Visa & other Fees?
Rupesh Jain
(Expert)
22 June 2015
no tds will be deducted on visa fee
Message likes :
1 times
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 June 2015
Sir,
Can you please elaborate, how tds is not applicable
Can you please elaborate, how tds is not applicable
27 July 2025
Sure! Here's a detailed explanation on **TDS applicability on payment of visa fees to a foreign government entity:**
---
### 1. **Is TDS applicable on payment to a foreign government?**
* **Section 195** of the Income Tax Act requires deduction of tax on payments to non-residents, including foreign governments or their entities, if the payment is taxable income in India.
* However, **visa fees paid to foreign governments are generally not considered income taxable in India** because:
* Visa fees are charges for a **governmental service** (issuing visa) and are **not a business income or professional fees**.
* They are typically considered **non-taxable in India**, as they don’t arise from any business or commercial activity carried out in India.
* Such fees fall under the category of **non-taxable receipts** or governmental fees, which are **outside the scope of taxable income** under Indian tax laws.
### 2. **Is TDS applicable on visa & other fees?**
* Visa fees paid to foreign governments are usually **regarded as fees for government services**, not as income or royalty.
* Hence, **no TDS is deductible on visa fees or similar governmental charges**.
* If there are other fees that are purely for services rendered outside India, or administrative charges, the TDS applicability depends on the nature of those fees. But visa fees themselves are exempt from TDS.
---
### **Summary:**
| Particulars | TDS Applicability |
| ----------------------------------------- | ------------------------------------------------- |
| Payment to foreign government (Visa fees) | No TDS required (non-taxable income in India) |
| Other fees to foreign government | Depends on nature; if not income in India, no TDS |
---
### Additional Notes:
* The Indian Income Tax Department generally exempts payments to foreign governments for sovereign activities (like visa fees).
* However, if the payment is for **commercial services or supplies** from foreign government entities engaged in business, then TDS may apply.
* Always verify the exact nature of payment and consider DTAA provisions if applicable.
---
If you want, I can help draft a formal note or find relevant circulars or rulings for your reference. Would you like that?
---
### 1. **Is TDS applicable on payment to a foreign government?**
* **Section 195** of the Income Tax Act requires deduction of tax on payments to non-residents, including foreign governments or their entities, if the payment is taxable income in India.
* However, **visa fees paid to foreign governments are generally not considered income taxable in India** because:
* Visa fees are charges for a **governmental service** (issuing visa) and are **not a business income or professional fees**.
* They are typically considered **non-taxable in India**, as they don’t arise from any business or commercial activity carried out in India.
* Such fees fall under the category of **non-taxable receipts** or governmental fees, which are **outside the scope of taxable income** under Indian tax laws.
### 2. **Is TDS applicable on visa & other fees?**
* Visa fees paid to foreign governments are usually **regarded as fees for government services**, not as income or royalty.
* Hence, **no TDS is deductible on visa fees or similar governmental charges**.
* If there are other fees that are purely for services rendered outside India, or administrative charges, the TDS applicability depends on the nature of those fees. But visa fees themselves are exempt from TDS.
---
### **Summary:**
| Particulars | TDS Applicability |
| ----------------------------------------- | ------------------------------------------------- |
| Payment to foreign government (Visa fees) | No TDS required (non-taxable income in India) |
| Other fees to foreign government | Depends on nature; if not income in India, no TDS |
---
### Additional Notes:
* The Indian Income Tax Department generally exempts payments to foreign governments for sovereign activities (like visa fees).
* However, if the payment is for **commercial services or supplies** from foreign government entities engaged in business, then TDS may apply.
* Always verify the exact nature of payment and consider DTAA provisions if applicable.
---
If you want, I can help draft a formal note or find relevant circulars or rulings for your reference. Would you like that?
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