Non resident Payment Compliance

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ArticleShip
393 Points Posted on 29 April 2021
Dear Experts ,

what compliance to be met if we make payment above 500000 to a NOn resident company ?

What if we make to the same person below 5 lakhs,

Thanks in Advance
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On 29 April 2021 at 09:26 Report
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Quick Summary
This discussion clarifies the Tax Deducted at Source (TDS) requirements when making payments to non-resident companies. Experts confirm that TDS under Section 195 must be deducted on payments to non-residents, regardless of the amount. The deduction rates vary (10%, 15%, or 20%) depending on the payment type, and tax is only deducted if the sum is chargeable to tax in India.

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Chartered Accountant
24588 Points Posted on 29 April 2021
Payment to NRI shall have to deduct TDS u/s 195. There is no threshold limit for payment u/s 195. Rates for 195 are 10% , 15%, and 20% according to nature of payment
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On 29 April 2021 at 10:18
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2742 Points Posted on 29 April 2021

There is Threshhold for payment made to non resident, you need to deduct TDS u/s 195

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On 29 April 2021 at 14:10
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Chartered Accountant
24588 Points Posted on 29 April 2021
No threshold limit. However, tax shall be deducted on sum chargeable to tax. Therefore, if no sum is chargeable to tax in India, then no tax is required to be deducted.
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On 29 April 2021 at 17:18

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