Harsha Hegde (13 Points)
09 July 2025Dear Sir/Madam,
What is the TDS rate on Director remuneration paid to Non Resident independent director ?
Payable in foreign currency.
Rama chary Rachakonda
(Master in Accounts & high court Advocate)
(8545 Points)
Replied 09 July 2025
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.
Harsha Hegde
(13 Points)
Replied 09 July 2025
Sir, any other court judgement available on the director remuneration payable to non resident director ?
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