Withholding Tax U/s 195

Hi Haresh,

As per clause (7) of DTA between India and USA, The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. Since you have mentioned that there is no PE in India, there is no need to deduct any withholding tax. However, one has to take the practising CA certificate to this effect before making any payment.