TDS and overseas company?

Question

If the sub contracting company is outside of India and double taxation agreement is in place is TDS still payable?

Answer 1

Yes, definitely.

No payment to a non resident (company or individual) can be made without deducting Tax at source and crediting it to Government. The DTAA provides different rates for different countries.  

The base rate for non residents however is 30% plus surcharge and education cess as applicable.