CA Final
208 Points
Joined November 2009
No tax is deductible if the property for which the rent has been padi is in france.
Reason: Sec 195 applies only when you make a payment
1. The payment is to a Non-resident and
2. It is an Income chargeable under the Act.
In this case, assuming the France Party to be a Non-resident, his global is NOT chargeable to tax in India as it is not earned in India as the property is situated in France.
AGAINST VIEW
The Karnata Highcourt in Samsung Case in Sep 2009 took a contrary view that TDS should be made on all payments to NR. However, recently Supreme Court has stayed this Judgement. So, this case will not apply.
Final Conclusion
NO TDS. Get CA Certificate and pay the amount.
Shiva