TDS on payment to Non Resident, DTAA with Newzealand.

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Meena sharma (Querist)
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17 September 2020 Hello All,

We are a premier institute of Technology of National importance. we developed an online course that will be offered by a Research associate from Auckland university, Newzealand. In addition to course, the research associate shall also develop experiments in embedded systems and work on joint research with our institute. The research associate was engaged for 6 months period. The term of Payment was that amount will be paid to the University of Auckland.
we have now received an invoice in NZ dollar for 28,700 raised by the University of Auckland. Please guide us w.r.t to remittance to a Non-resident university in compliance with section 195, DTAA and rule 37BB.
Queries:
1. Whether amount is chargeable to tax under provisions of the Act?
2. In whose hands is it taxable? The University or Research Associate?
3. If the amount is deductible then at what rate?
4. If amount is chargeable under the provisions of the act but DTAA exempts such payment from Tax in India, then which part of form 15CA is required to be filed?whether (part B or Part D).

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 September 2020 1 and 2 10% TDS applicable to the University.
3 10% TDS deductible under section 195 fees for technical service.
4 15CB required fill it in part C.

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