Requirement to issue TDS certificate when payment to non resident is made after depositing the tax

[madhavvan n]

A payment to non resident is made after grossing up the tax amount and tax is deposited, in this case is TDS certificate required to be issued. since the Non resident has already received the tax component

[Surender Gupta]

When TDS is being deducted in accordance with the provisions of Income Tax Act, 1961, it is mandatory requirement of Section 203 that TDS certificate shall be issued in the prescribed manner. Sub section (3) of section 203 for non issuance of TDS certificate with effect from 1.4.2010 to be deleted after enactment of Finance Bill, 2010.

[sanjay gupta]

There is a circular also for this issuance of TDS certificate in case of Grossing up. The TDS certificate has to be issued in ti case.

AI Summary

TDS certificate requirement applies where payments to non-residents are grossed up and tax is deposited; certificate must be issued.
When a payment to a non-resident is made after grossing up the tax and the tax is deposited, the payer must issue a TDS certificate in the prescribed form; Section 203 mandates issuance of the certificate when tax is deducted, and administrative circulars confirm issuance is required in gross-up situations.