TDS payment to Sweden Company

Dear Sadhuanj!

This payment is made for technical service rendered outside India by a non resident company. I feel, no TDS is attracted.

Do post your response!

Thank U!!

Dear Mr Anjaneyulu,

The nature of transaction referred in your query is a technical service rendered by a non-resident company.It is therefore attracted TDS provisions as specified in Sec195. Pls deduct tax as specified in Double tax avoidance treaty( if agreement with such country is in place). Otherwise, your company shall have to face disallowance of such total payment made to Non-Resident. If the party agrees to it, deduct from his payment and issue tds certificate and by virtue of having DTA treaty, they can claim set off in their country.In case the non-resident doesnt agree for deduction from his payment, you need to gross-up and pay it to the govt, in which case it will be additional cash out flow to the extent of tds.

Vishwa