Donations to foreign entities: whether tds deductible?

A Company wants to make a donation to a foreign party. Is it taxable? Is TDS deductible while issuing Form 15cb?

Replies (4)

yes donation is liable to deduct the TDS but it depends on the circumstances and other for eg. if trust's income is not fully exempt then donation is liable to TDS  because it is the income of trust and payer will cliam the same as expenses

Any documentation to support this?

Anything on capital account (except CG) is not treated as income.  Can donation be treated as income accruing in India u/s 9(1)? This appears more like a loan transaction.  May not attract TDS, but I don't know the RBI regulations in this regard.

Hi,

 

IN my opinion, its not taxable and therefore no TDS should be deducted thereon. Further, there is no need for issuing form 15CA and 15CB for making donations as such transaction fall under the exception list which are exempt from compliances prescribed under Rule 37BB of the Income Tax Rules,1962. Therefore, no need for 15CA and 15CB. 

Thanks and Regards,

Manoj B. Gavali

 

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