Taxability of Fees paid to Non resident for evaluating Thesis papers

[ROHIT GOEL]

Dear Experts,

A University is paying fees to non resident for checking and evaluating Thesis prepared by students studying at the University. Whether the same would qualify as fee for technical services and thus liable for tax u/s 9?

[Charu Tyagi]

Taxability of payment to Non-Resident Professional

Payment to non-resident profession for checking and evaluating thesis does not amount to payment for technical services as per section 9(vii), However, such payment to Non-Resident would be taxable and tax is required to deduct u/s 195 of the Income tax as payment of professional fee made to Non-Resident.

AI Summary

University Payments for Thesis Evaluation Not Technical Services Under Section 9; Tax Deduction Required Under Section 195. A university is paying fees to a non-resident for evaluating student theses and is questioning whether this payment qualifies as a fee for technical services under section 9 of the Income Tax Act. The response clarifies that such payments do not constitute fees for technical services as per section 9(vii). However, these payments are taxable and require tax deduction under section 195, as they are considered professional fees paid to a non-resident.