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Tds applicability

TDS 2776 views 2 replies

avinash

CA Job

34 Points Joined January 2013

Dear all,

I am Avinash.I kindly request you to guide me on a query relating to TDS.

My query is with respect to deduction of TDS on sponsorship payment by Indian Company. Although it is very clear that sponsorship payments made to residents will attract TDS provisions under 194C of the Income Tax Act, I am unable to conclude if TDS u/s 195 will apply to payment of sponsorship made to non resident. The Indian company will be making payment towards sponsorship to a UK company for an event which will be held in africa. Please guide me if sec 195 will apply to the payment and if DTAA will also affect such payments.

Thanking you in advance.

Regards

Avinash

(Avinash.161 @ gmail.com)

Replies (2)

Gaurav

50 Points Joined March 2009

Any Payment made to non resident in nature of income will attract Sec 195. However, if it is covered under DTAA, then either DTAA or sec 195 of Income tax act, which will be more beneficial to accesses, will prevail.