What is TDS rate on Director remuneration payable to Non Resident director

Dear Sir/Madam,

What is the TDS rate on Director remuneration paid to Non Resident independent director ?

Payable in foreign currency.

Replies (2)
Quick Summary
This discussion clarifies the TDS rate applicable to remuneration paid to non-resident independent directors. The standard rate is 20% under Section 195 of the Income Tax Act, plus surcharge and cess. However, if the director has a Permanent Establishment in India, the applicable tax rate will be governed by the Double Taxation Avoidance Agreement (DTAA) between India and their country of residence. Payments in foreign currency are also subject to FEMA regulations.

The TDS rate on director remuneration paid to a non-resident independent director is 20% plus applicable surcharge and cess,as per Section 195 of the Income Tax Act, 1961.However , if the non-resident director has a Permanent Establishment in India, the tax rate would be determined based on the tax treaty between India and the country of residence of the non-resident director.

The payment of director remuneration to a non-resident independent director in foreign currency would be subject to the provisions of the ( F E M A),1999.

Sir, any other court judgement available on the director remuneration payable to non resident director ?

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