TDS for Payments Abroad

During all this time with my company being part of an international group of companies we have always been doing jobs for them and receiving their payments without any problem, just like the payments of other clients abroad.

But short time ago we got something done from one of our collaborators abroad, and realized that it is not that easy to do payments the other way around. For payments to other parties abroad you also need to calculate TDS and it could be quite complex.

India has different treatises with different countries, thus a different TDS applies for each country and each concept. Furthermore, there are some countries with which there is no treatise, and it is not very clear what TDS should be deduted (e.g. Argentina, which is my case).

Be careful before making payments abroad, ask your CA to do some research. Otherwise you may end up being disallowed that payment and having to pay tax for it as if it were your profit.

There seems to be an exception in case your payee is an individual who never has been to India and you are paying for professional services... But my CA is still doing research on that.