TDS and TCS on foreign payments

Summary Checklist for Your Client

• Identify the Nature of Service: Determine if it is a professional/technical service or simple advertising.

• Check DTAA: Check if a tax treaty exists between India and the vendor's country to potentially lower the TDS rate.

• Collect Documentation: Always obtain an invoice, contract, and the necessary tax documentation (TRC, Form 10F, No-PE declaration) from the foreign service provider.

• Compliance Filing: Ensure you file Form 15CA/15CB through your bank portal before remitting funds.

• TCS Avoidance: If your bank incorrectly triggers TCS on a business remittance, provide them with proof of your TDS deduction to claim exemption.