TDS ON PAYMENT FOR EXHIBITION OUTSIDE INDIA

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3 Points Posted on 21 June 2023

We need to pay Rs. 5 lacs to outsider for participating in exhibition to be held outside India. Will we deduct TDS on this amount?

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On 21 June 2023 at 10:34 Report
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This discussion clarifies whether Tax Deducted at Source (TDS) is applicable when making payments to an outsider for participating in an exhibition held outside India. While TDS under Section 195 might apply to payments to non-residents, it depends on whether the income is considered taxable in India. If the services are rendered entirely outside India with no Indian nexus, TDS may not be required, but obtaining a Form 15CB from a Chartered Accountant is crucial to certify this. The process involves filing Form 15CA and potentially deducting TDS based on applicable rates or Double Taxation Avoidance Agreements (DTAA).

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GST Consultant
15986 Points Posted on 21 June 2023
No TDS to be deducted unless the event management is required to pay tax in India.
15CA & CB to be filed for foreign payment.
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On 21 June 2023 at 11:05
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3 Points Posted on 21 June 2023

We will file Part d of Form 15 CA as the above payment is non taxable. Will 15 CB is also required ?

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On 21 June 2023 at 12:45
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100 Points Posted on 27 June 2023


Yes, TDS (Tax Deducted at Source) needs to be deducted on the payment of Rs. 5 lakhs to the outsider for participating in the exhibition held outside India.

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On 27 June 2023 at 10:06
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PROP
22 Points Posted on 03 October 2024

WHETHER TDS IS TO BE DEDUCTED FOR PARTICIPATION FEES PAYABLE OUTSIDE INDIA AND WHETHER  15CB NEEDS TO BE FILED. IF TDS DEDUCTIBLE, WHAT WOULD BE THE RATE OF TDS

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On 03 October 2024 at 13:45
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Practice
4698 Points Posted on 22 April 2025


Yes, since the payment is being made to a non-resident, TDS under Section 195 may be applicable, even if the income is not chargeable to tax in India. It depends on the nature of services and whether those services are rendered outside India with no income deemed to accrue or arise in India.

In many such cases, Form 15CB from a CA is obtained to certify that the income is not taxable, and then Form 15CA Part D is filed to proceed with the remittance without TDS.

To simplify this process and save time, you can use our Excel utility to prepare bulk XML files for Form 15CA & 15CB – accurate, efficient, and ready for portal upload.

Download here: https://xltool.in/15ca-15cb/ | www.xltool.in

 
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On 22 April 2025 at 15:22
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Tax Consultant
1820 Points Posted on 17 June 2026

TDS under Section 195 can apply on payments to non-residents even when the work is done entirely outside India, so this is worth checking carefully.

The test is whether the income is chargeable to tax in India:
- If the non-resident exhibition organizer has no PE in India and this is purely a commercial venue rental abroad, the income may not have an India source and TDS may not be required.
- If the payment is for services rendered with an Indian nexus (consulting, designing the Indian booth, producing India-specific content), then TDS under Section 195 applies at the rates in force.

For software, IP use, technical know-how, or royalties embedded in the exhibition services: these fall under Section 115A (royalties and fees for technical services). The rate is 20 percent (or DTAA rate if lower, typically 10-15 percent).

Documentation before remitting:
1. Obtain Form 15CB from a CA (certification of applicable rate and TDS amount).
2. File Form 15CA Part C online before the remittance.
3. Deduct TDS at the Section 195 or DTAA rate.
4. Pay TDS via challan and file TDS return.

This [Section 115A guide on royalties and FTS for non-residents](https://taxgarden.in/blog/section-115a-royalty-fts-tax-non-resident-dtaa-india-2026) covers the rates, DTAA override conditions, and Form 15CA/15CB filing steps in detail.

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On 17 June 2026 at 11:59

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