Tds on professional fee paid to nro account

This discussion addresses the Tax Deducted at Source (TDS) implications when paying professional fees or commissions to an NRO account. Key considerations include the applicable TDS rate, relevant sections of the Income Tax Act (specifically Section 195), and the type of TDS return to be filed. The advice suggests that if services are received in India, the lower of the relevant country's Double Taxation Avoidance Agreement (DTAA) rate or the Indian rate (20% if no PAN) applies, requiring a Tax Residency Certificate (TRC) and a declaration. If services are rendered and consumed entirely outside India, TDS under Section 195 is generally not applicable.