whather TDS is deductable on the payment out side india?
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 January 2010
Whather TDS is deductable on the payment of BOOTH RENT to outside INDIA and what is the rate of TDS ?
CMA Ramesh Krishnan
(Expert)
11 January 2010
Please go through DTAA and Sec.195
03 August 2025
Regarding TDS on payment outside India, here’s the key info:
Is TDS deductible on payments like booth rent made to a party outside India?
Generally, No TDS is deductible on payments like booth rent to a foreign entity because it is a payment for use of tangible property outside India, and such payments typically don’t attract TDS under Indian law.
However, if the payment is categorized as royalty or fees for technical services (FTS) under the Income Tax Act, then TDS may apply. But booth rent usually doesn't fall under royalty or FTS.
Also, if the payment is for services rendered outside India, it usually is considered income received outside India and no TDS is required under Indian tax law.
What about tax treaty?
If the country where the payment is made has a Double Taxation Avoidance Agreement (DTAA) with India, the treaty provisions would prevail. Usually, booth rent is not a taxable income in India for the non-resident and so no TDS is deductible.
If TDS is applicable, the rate depends on the nature of payment and the DTAA provisions but booth rent normally does not fall in taxable categories attracting TDS.
Summary:
No TDS is deductible on booth rent payments made to parties outside India.
Is TDS deductible on payments like booth rent made to a party outside India?
Generally, No TDS is deductible on payments like booth rent to a foreign entity because it is a payment for use of tangible property outside India, and such payments typically don’t attract TDS under Indian law.
However, if the payment is categorized as royalty or fees for technical services (FTS) under the Income Tax Act, then TDS may apply. But booth rent usually doesn't fall under royalty or FTS.
Also, if the payment is for services rendered outside India, it usually is considered income received outside India and no TDS is required under Indian tax law.
What about tax treaty?
If the country where the payment is made has a Double Taxation Avoidance Agreement (DTAA) with India, the treaty provisions would prevail. Usually, booth rent is not a taxable income in India for the non-resident and so no TDS is deductible.
If TDS is applicable, the rate depends on the nature of payment and the DTAA provisions but booth rent normally does not fall in taxable categories attracting TDS.
Summary:
No TDS is deductible on booth rent payments made to parties outside India.
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