TDS on payment to NRI outside India

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  1. Chirag7181

    Chirag7181 New Member

    I am individual tax payer from India,
    I wants to send funds to United Kingdom for the website advertisement Business Purpose You can say website traffic purchase or website promotion funds.
    I had asked my bank to send wire transfer but they asked me to fill up 15 CA and 15 CB form for that. So I had asked this matter to my local CA here and he said that i need to pay 30.90 or approx. 31 % TDS here what ever i send funds abroad for website advertisment purpose.
    so if it is true than we can not make successfull business cause 31% of the invested amount i need to pay here as a tax so our campaign can not be profitable...So i need advice from any expert CA here is this true that i need to pay compulsory 31% TDS here ? or is there any way by which i can send funds abroad with out any tax deduction. Please Guide me correct information for my catagory of business.

    Our Purpose code of RBI transaction is : S1007 or P1007, advertisement.

  2. Manoj Mehra

    Manoj Mehra Active Member

    If you are making any payment to any NRI, you are required to deduct TDS on the Income of such NRI under Section 195.

    Assuming that the income of the NRI is in the 30% slab, therefore you would be required to deduct 30% TDS and deposit the same with the Govt.

    In case this payment was made to a resident indian, then the person receiving the payment would have himself paid the tax.

    However, in this case - as the person is NRI - therefore you are deducting the tax on his behalf and paying to the govt.

    The tax that is being paid to the Indian govt is the same.
  3. Chirag7181

    Chirag7181 New Member

    I am paying to UK bank financial institute who is providing me cards to load funds for advertisement purpose. They are not having any activities in India like PE-Permenant establishment. nor they are coming or visiting india for business purpose.

    They are not individual who is recieving my funds. They are corporate company who will recieve funds for web service or advertisement purpose. so now please guide me again thanks.
  4. Manoj Mehra

    Manoj Mehra Active Member

    Can you check with your CA that under which section is TDS required to be deducted?
  5. Chirag7181

    Chirag7181 New Member

    lol my CA is noob he dont know digital world that is why i am here to help if i got solution from my local city than i don't need to post question here
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