TDS and TCS on Foreign Payment

Summary: For business payments like digital marketing to a foreign entity, you are primarily responsible for TDS under Section 195. TCS generally applies to personal outward remittances under the Liberalised Remittance Scheme (LRS) and is typically not applicable to legitimate business service payments. You should consult a tax professional to determine the exact taxability of the specific service and whether DTAA benefits apply to reduce your TDS burden.