TDS liability for Embassies/High Commission

No ....There is no TDS Liability on Embassies . They are known as deputation to foreign government. There is no requirement to deduct TDS on income if payee is the government.

Dear Preti,

I m not sure on this but I think they would be exempt from this...

Thanks for the replies. I want to ask Nirav the sections on the basis of which u told that deputations of foreign government are not required to deduct tax.Please refer the related sections.

Dear Preti,

This might change ur view

1) /experts/experts_message_display.asp?group_id=6841

2) /experts/experts_message_display.asp?group_id=174566

 

Amir thats nice of u to send me the link but my query still remains unresolved.I want to know the specific sections that are relevant.

Dear Preti,

If u look at the links the experts at this forum only suggested that High Comissions/Embassies are liable to deduct TDS simply because they r nowhere excluded....

So there is no specific section pertaining to them...

I don't know y but I still have my own doubts on this..

Circular No. 9 /2009 F.No.142/19/2007-TPL Government of India Ministry of Finance Department of Revenue (Central Board of Direct Taxes) **** New Delhi, the 30th November, 2009 Subject:- Remittances to non-residents under section 195 of the Income-tax Act –– remittances of Consular receipts - clarification reg:- Reference is drawn to Circular No. 4/2009 dated 29th June, 2009 prescribing the revised procedure for furnishing information regarding remittances being made to non-residents w.e.f. 1st July, 2009. 2. As per Article 28 of schedule to section 2 of the Diplomatic Relations (Vienna Convention) Act, 1972, the fees and charges levied by a diplomatic mission in the course of its official duties shall be exempt from all dues and taxes. Hope this helps you to solve ur query ..

Circular No. 9 /2009 
 
F.No.142/19/2007-TPL 
Government of India 
Ministry of Finance 
Department of Revenue 
(Central Board of Direct Taxes) 
**** 
 
New Delhi, the 30th
 
 November, 2009 
 
Subject:- Remittances to non-residents under section 195 of the Income-tax Act –– 
remittances of Consular receipts - clarification reg:- 
 
 
Reference is drawn to Circular No. 4/2009 dated 29th June, 2009 prescribing 
the revised procedure for furnishing information regarding remittances being made to 
non-residents w.e.f. 1st July, 2009. 
 
2. As per Article 28 of schedule to section 2 of the Diplomatic Relations (Vienna 
Convention) Act, 1972, the fees and charges levied by a diplomatic mission in the course 
of its official duties shall be exempt from all dues and taxes.