[Section 195]- TDS on Payment to a Non-Resident

 

Table of Contents

·         1.   TDS on income of Non-Resident:

·         2.   Who is required to Deduct TDS under section 195 [Explanation 2 to Section 195(1)]

·         3.   The person responsible for paying:

o    (A) Where the sum representing consideration for the transfer of foreign exchange asset is payable to non-resident Indian [Section 204(iia)]

o    (B) In any other case [Section 204(iii)]

·         4.   When the TDS is to be Deducted:

o    Meaning of Rate or rates in force for section 195 [Section 2(37A)]:

·         5.   [Section 195(2)]- Payer of the amount may make application for TDS Deduction on the “income” comprised in the payment:

·         6.   [Section 195(6)]- If The person responsible for paying any sum to a non-resident to furnish information in a prescribed manner

o    [Rule 37BB] – Furnishing of information for payment to a non-resident, not being a company, or to a foreign company

·         7.   [Section 195(7)]- Board empowered to notify class of persons or cases who shall make an application to Assessing Officer to determine appropriate portion of sum chargeable to tax

·         8.   Where no TDS is to be Deducted at Source [Section 195(3) and Rule 29B]:

·         9.   Where the TDS is either not to be deducted or to be deducted at Lower Rate [Section 197 Rules 28 and 28AA]

 

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