Tds on foreign royalty payment

Hi,

You are liable to deduct tds u/s 195 rw 9 (1) (vi). Rate is 25% you can take shelter under dtaa and pay at that rate, if the payee doesnot have pan then rate of 20% will come into effect and should be considered while deducting provisions as per act. This is a breif jist, whether tds is payable or not etc should be decided on analysing full facts of your case and contract with subsrciption provider. Kindly approach professional help.

Regards,

Karthik V Kulkarni