TDS on payments made to a foreign university.

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This discussion addresses whether an Indian company needs to deduct Tax Deducted at Source (TDS) when making payments to a foreign university for employee training conducted outside India. The consensus is that if the foreign university has no permanent establishment in India and the training takes place abroad, TDS is generally not applicable on such payments.

"Anant"

"Anant" (Querist)
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04 May 2020 Hello,
We have a client company which sent its employees to a foreign country to take training in a university established in that country. The foreign university doesnt have any permanent establishment in india. The amount payable by indian co. to the foreign university is $15,000. Is there any tax liability in this case. Is the indian co. liable to deduct income tax (tds) on the payment to be made. Please advise as per law.