Withholding tax for payment to non resident

Under Section 9(1)(vii), the place of physical performance (Country E) is irrelevant because the services are utilized for a business in India.

Taxability under DTAA: Depends on the Treaty. If the India-Country D DTAA contains a "Make Available" clause, standard training usually does not satisfy this clause. Thus, in the absence of an Indian Permanent Establishment (PE), the income is not taxable in India. If the DTAA lacks a "make available" clause, it is taxable at the beneficial treaty rate or domestic rate (10% + surcharge/cess).

Withholding Tax (TDS): If the income is treaty-exempt, no TDS is required, provided supporting documents (TRC, Form 10F, No-PE declaration) are collected and Forms 15CA/15CB are executed. If it is taxable under the treaty, TDS must be deducted before making the outward remittance.