I am working as free lancer for some person as HR for some animation work. And getting paid for the work.
I hired a Russian animation artist to get this work done.
Now I have to make payment.i am working as individual and the artist also working as individual.
How to make payment to that russian artist ,
How to deduct the TDS.
How to provide him TDS certificate.
What TDS rate will be applicable on him.
You will need to check India-Russia DTAA and see if this payment is also taxable under India-Russia DTAA or not. If not, then you needn't deduct tax. Under the Income-tax Act, this payment could be treated as Fees for Technical Services and hence TDS at 10% (plus surcharge, if applicable and education cess) should be done. If he does not have PAN in India, TDS @ 20% needs to be done. However, if the amount is taxable under India-Russia DTAA you can consider applicable beneficial DTAA rate.
The TDS so done needs to be deposited into the government treasury within 7 days from end of the month in which TDS is done. You will also need to file quarterly TDS return within a month from the end of the quarter. Please note that if you dont have Tax Deduction Account Number then you need to obtain it before you can deposit the TDS amount into the Govenment Treasury.
The TDS Certificate will be generate only after you have filed the quarterly TDS return
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