Membership fee to a foreign professional istitution

[Reshma kochar]

If we are ;paying Membership fee of a Foreign Professional Body, TDS provision would imply or not?

If yes, under which section or at which rate??

[Anuj Gupta]

TDS should not apply as the membership fee shall be catagorised as Business Income and not FTS/Royalty and in absense of PE the same shall not be taxable.

AI Summary

TDS Not Applicable on Foreign Membership Fees Viewed as Business Income, Not FTS or Royalty, Without PE Presence. A query was raised regarding whether Tax Deducted at Source (TDS) applies to the payment of membership fees to a foreign professional body. The response clarified that TDS should not apply because the membership fee is categorized as Business Income rather than Fees for Technical Services (FTS) or Royalty. Additionally, in the absence of a Permanent Establishment (PE), the fee is not taxable.