Tax on payment to Freelancers outside India

This discussion clarifies Indian tax rules concerning payments to foreign resident freelancers who work on Indian projects but are based outside India. The consensus is that if a foreign entity pays an offshore freelancer for services rendered outside India, the foreign entity generally does not need to deduct Indian TDS. TDS deductions are typically required only if the foreign entity is responsible for paying the freelancer and the payment is deemed to have an Indian nexus.