Tds on payment to US organisation

[Dharmesh Soni]

Sir good morning there is a one query which require your assistance.

A doctor from Delhi who made payment to US organisation as membership fee( that US organization provides knowledge and latest updates for doctors) of 475 dollars equivalent to Rs. 39000 on which TDS not deducted. Whether TDS required to be deducted?

AI Summary

Clarification on TDS Deduction for Payments to Non-Residents: Section 195 Requires Deduction Without Threshold Limit A doctor from Delhi paid a US organization $475 as a membership fee, equivalent to Rs. 39,000, without deducting TDS. The query seeks clarification on whether TDS is required for such payments. The response explains that any payment to a non-resident, taxable in India, requires TDS deduction under Section 195, regardless of the payer's status. There is no threshold limit for TDS deduction, and the applicable rate is the one most beneficial to the payee, either from the Finance Act or the Double Taxation Avoidance Agreement. Surcharge and cess apply only to Finance Act rates, not DTAA rates.