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

AI Summary

Clarification on Withholding Tax: Training and Implementation Costs from Overseas Suppliers May Attract Tax if Payments are Commissions. A query was raised regarding the applicability of withholding tax on payments made for training and implementation costs related to new tooling from an overseas supplier. The finance director sought clarification on whether such payments attract withholding tax. The response clarified that while mere sale and purchase activities are not subject to withholding tax, payments made as commissions to overseas agents may attract withholding tax if they are considered to have accrued or arisen in India.