TDS U/s 195 issue

[santosh sabat]

One of my client(AOP- Trust) is issuing payment to a a foreign company for training programme in india.  The payment is to be made to that foreign company of ireland. 

 is it subject to TDS?  If so what is the rate of TDS?

 santosh k sabat

[satish yadav]

Dear Santosh ji,

In my opinion this payment is subject to TDS.The rate shouild be applicable at the rate at which foreign companies are taxable in India including surcharge and education cess and secondary and higher education cess.

Satish Chandra Yadav

Chartered Accountant

AI Summary

TDS applies to payments to foreign companies for services in India; rate equals tax for foreign companies plus cesses. Payment by a domestic association of persons (trust) to a foreign company for services (training) in India is subject to TDS U/s 195; the payer must withhold at the rate at which foreign companies are taxable in India, computed inclusive of applicable surcharge and education cesses (including secondary and higher education cesses).