TDS U/S 195 ( payment to Non Residents )

This query is : Resolved

sanjay kale (Querist)
Follow

03 February 2008 Hello,

I work in a renowned media house. We are
publishing a monthly magazine in which various authors all over the world write articles. We have to pay them charges for
the articles. Is it necessary to deduct TDS on this payment to NRIs ? At what rate ? What is the procedure ? Pl anyone clarify ?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
Follow

03 February 2008 Yes. Please refer to section 195 which is self explanatory.

CA Anil Jain

CA Anil Jain (Expert)
Follow

03 February 2008 the same is right

Aditya

Aditya (Expert)
Follow

04 February 2008 Yes.
For the rate, it depends on the date of entering into the agreement. For the rate please see S 115A(b)(A), AA.

If payment is made 'net of tax' as per agreement, S 195A should be followed.

shrikant

shrikant (Expert)
Follow

06 February 2008 yes, but first it is necessary to know wherther said receipt is chargeabele to tax or not. if said payment is not liable to tax then not necessary to deduct tax at source but if chargeabe in the hands of receipts then liable to TDS at rate tax liable to pay in the hands of person who get the income

shrikant

shrikant (Expert)
Follow

12 May 2008 The payment which your are made is liable for TDS beacause this is income accured in india so it is chargeable to tax, so you have to make TDS.
For rate of TDS you have first read terms and condition of contract and thereafter you have to apply section 115 or section 44DA as per terms of contract

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now