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

Taxability of non-resident professional fees requires withholding under section 195 even if not technical services. Payments to non-residents for checking and evaluating theses do not qualify as fees for technical services, but remain taxable and must be treated as professional fees to which withholding tax obligations for payments to non-residents apply.