TDS on Fee to University in the UK

Hi Anoop,

Does the University or the foreign institution the student isenrolled with have a permanent establishment or a liaison office orthe like in India? If not, then prima facie this is a case where theincome of that university won't be deemed to accrue or arise inIndia in terms of Section 9. Section 195 gets called in only afterwe're sure of an item of income of a non-resident being taxable inIndia.The bank is right in insisting on the certificate of the CA in termsof the RBI Circular No. 3 (A.P.) DIR Series 2007-08/100 dated 19thJuly 2007. The format of this certificate is prescribed in the CBDTcircular No 10/2002, dated 9-10-2002. You can issue this certificatestating that the payment being remitted isn't taxable in India. Ofcourse before doing that you'd have to make sure, in terms of theDTAA India has with the UK that the income of the Britishinstitution isn't liable to tax in India.Thanks,CA Sanjeev Bedi--- In http://finance.groups.yahoo.com/group/ICAI_CIRC_MEERUT_CA/post?postID=hCxbDwA3S_Rbip1Sn8SEPJ3wesq7ZnYw69hqDrMwCUwvSYDXhdboyPqlUY6rVhNbBuAH0kupEbI2XLlPMxpLFo3FDpEPcGifOGQU, Anoop Bhatia wrote:>> Respected Members>> I have faced one query and seeking your valuable opinion on thesame.>> A student pursuing professional degree from abroad is required topay 500> pound as fees to the foreign institution by way of DD. When thestudent> approached to the bank for dd, banker asked him to provide a CAletter> certifying that TDS has been applied on such fees being paid fromIndia.>> Prima facie the above situation appears to be covered by theprovisions of> Section 195 of the Income Tax Act, 1961 but how we can ensure thatTDS> compliance is required or not ? How we can expect a student toensure> deducting TDS on the fees paid by him to a foreign institution. Todo so he> needs to have PAN as well as TAN no. because without which TDS cannot be> ensured. Is there some practical way to tackle this situation. orthere> exists some CBDT clarification/circular on this issue.>> Kindly enlighten.>> Thanks & regards>> Anoop Bhatia> Jaipur>