Witholding tax on payment of training & implementation cost of new tooling to plant

[Govinda Raju]

We have recently received an help from the supplier of new tooling from a overseas company training and implementation help. Is there any witholding tax attraced for such payment? please help Govindraj Finance director

[Surender Gupta]

Mere sale and purchase activity is not subject to any withholding tax (TDS). However, amount paid as Commission to overseas agent may result into TDS if treates as accrued and arise in India.

AI Summary

Withholding tax: cross border sale of tooling generally not subject to TDS, but commission payments may attract TDS. Whether payments to an overseas supplier for new tooling and associated training attract withholding tax depends on characterization: mere sale and purchase of tooling is not subject to withholding tax, but payments characterised as a commission to an overseas agent that are treated as accrued and arise in India may give rise to TDS obligations.