tds on personal resi house design

[satbir singhwahi]

Amount of design charges are to be paid to Company in Singapore by a salaried individual , for design of residential house . Whether tds u/s 195 applicable ? As per Article 12 para 5 (d)  of DTAA with singapore this seems to be exempt .

AI Summary

No Withholding Tax on Design Fees to Singapore Company Without Permanent Establishment in India Under Section 195 A salaried individual inquired about the applicability of withholding tax under section 195 for design charges paid to a company in Singapore for a residential house design. The individual referenced Article 12, paragraph 5(d) of the Double Taxation Avoidance Agreement (DTAA) with Singapore, suggesting an exemption. A chartered accountant responded, stating that if the company has no permanent establishment (PE) in India and is engaged in consultancy, no withholding tax is required.