Tds applicability

 

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)

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.

In my view. Sec.195 would apply to such payments. The recipient can take the sheild of DTAA towards the TDS in India.

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