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

Tax withholding on foreign professional membership fees may not apply where the fee is business income and no permanent establishment exists. The membership fee to a foreign professional body is characterised as business income rather than fees for technical services or royalty, so tax deduction at source should not apply; additionally, in the absence of a permanent establishment the fee is not taxable as income attributable to a PE.