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?
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.
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