Tds on foreign payments

Dear Friends,

We as the one of the Garmernts Exporting Company having the engaged quality review of garments as per buyer request in various foreign countires and services provided outside india. But the payments has been made from india for the quality review. As per our buyer policy (from various countries from outside india) only accept the garments after quality has been reviewed by the quality checkers engaged from outside india. Is that foreign payment made by our indian company to the foreign quality person is liable to TDS? If yes under what Category

 

Replies (1)
Since you are making payments to a non-resident, you have to withhold tax under section 195. For rates and classification, please refer DTAA of respective countries.

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