Hi,

One of client has subscribed to a foreign business association. Client need to pay $ 5,000 as a membership fee.

What should be the TDS rate as per section 195?

Whether membership fee paid to associations are taxable in India? TDS part becomes applicable if it is taxable in India.

Posted 2 years ago by Rahul Rai


Dear Rahul  

Taxability of such income will totally depend on the status of such FBA in india, so can you elaborate what is the exact status of such FBA in india i mean do they have any office here or place of business ???

 

Regards

CA Bhuwan Sharma 

Posted 2 years ago by NRO0263978 BHUWAN CHAND SHARMA


They do not have any place of business in India. The fee is paid to an association in USA which does lobbying for its members.

Also please tell what service we need to select in 15CB as per RBI list?

Posted 2 years ago by Rahul Rai


Dear Bhuwan Chand Sharma,

Its a non-resident entity and does not have Permanent Establishment in India neither holds Indian PAN.

To be more open on it, its a USA India business council.

Posted 2 years ago by Rahul Rai


Dear Rahul

I am out of town due to some serious family issue, thats why i was unable to reply kindly give me a day to reach out to you on our query.

 

Regards

CA Bhuwan Sharma

Posted 2 years ago by NRO0263978 BHUWAN CHAND SHARMA


If such association is not having any business connection as you mentioned in india then same cannot be taxed in india.and regarding from 15cb you need to select code s1019 i,e for payment for any other service not mentioned elsewhere\

 

 

Regards

CA Bhuwan Sharma

Bhuwan.chand.sharma@icai.org

Posted 2 years ago by NRO0263978 BHUWAN CHAND SHARMA


Thank you very much Mr. Sharma.

After CA Pulkit Sharma, you are rocking this forum.

Thanks a lot.

Posted 2 years ago by Rahul Rai


Thank you Mr. Rahul Rai

Posted 2 years ago by NRO0263978 BHUWAN CHAND SHARMA


I have a different opinion, most of these organization work as your PR agency or provide similar service. You can easily call them management service which again under section 9 are considered as technical services.

Going through this I believe TDS should be done at 10% as per section 195 considering it as fee for technical services.

Posted 2 years ago by anonymous user


It makes sense, can the services by these association be considered under technical services attaching management fee concept?

Posted 2 years ago by Rahul Rai


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