Withholding Tax on Foreign Payments
Section 195#
TDS on payments to non-residents.
Rates#
- Royalties: 10%
- Technical services: 10%
- Interest: 5-10%
- Dividends: 10%
Threshold#
- No threshold for non-residents
- Treaty rates if lower
Compliance#
- Obtain TAN
- Deduct and deposit
- File quarterly returns
- Issue certificates
Conclusion#
Foreign payments require TDS compliance.