What tax applies for UAE service payments from India?

We are an Indian company seeking legal services in the cybersecurity domain from a company in the UAE. The UAE company has no presence in India and lacks a PAN card. What tax should be deducted when making payments from India to the UAE company?

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Advocate By LEAD INDIA Answered: 28 May 2025

Payments to a UAE company from India may attract Tax Deducted at Source (TDS) under Section 195 of the Income Tax Act. The applicable TDS rate depends on the nature of the payment and the Double Taxation Avoidance Agreement (DTAA) between India and the UAE. Consult a tax professional to determine the exact rate and compliance requirements. For further legal assistance contact us on our helpline number.

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