Payment to non dtaa country

[Manish Kumar]

Dear  Sirs

I am R.Manish , working as a accountant in a Forwarding company(Logistics). Being as a forwarer we remit money to foreign customers and get inward from them.

I have a doubt in payment made to a NON Dtaa Country.

i want to know what are issues if the payment is made to a NON Dtaa Country.

i want to make a payment for the customer in Latvia, which is non dtaa..

Amt is USD 3200 around...

await for ur reply.

Manish

AI Summary

Withholding tax on payments to non DTAA countries depends on payment nature and domestic withholding rules.
Payments to countries without a tax treaty are governed by domestic law: determine whether withholding arises under Section 195 and whether the remittance is chargeable under domestic chargeability rules by first ascertaining the precise nature and purpose of the payment (e.g., freight or delivery charges); in absence of a DTAA treaty relief does not apply and the appropriate TDS treatment and rate must be fixed under domestic law on the taxable element.