How to pay a non-Indian citizen trainer

Labour, HR & Safeguarding
1

Hi! We plan to have a UK-citizen trainer taking classes (so far online) for a fellowship program we conduct. Would be great to get guidance on paying that person (we dont have FCRA) – That what are the tax and other laws we should be mindful about.
Thank you

2

Thanks Sruthin for your query. 2 steps

  1. Under Section 393(2) of Income Tax Act 2025 TDS at applicable rate (10%) will need to be deducted for payment fees for professional services to a foreigner. However, lower TDS rate may apply in case of double taxation avoidance agreement (DTAA) between India and UK and the foreigner will have to provide additional documents i.e. tax residency certificate, Form 10F and NOC. You need to file quarterly TDS return in Form 144.
  2. Before remitting payment from your local account, your Bank will require Form 145 as filed on your IT portal for remittance upto Rs.5 lakh and additionally Form 146 for remittance beyond Rs.5 lakhs under IT Rules 2026.
  3. For such outward remittance, GST under reverse charge mechanism would apply for import of services.

CS Sharad Bhargava

3

Thanks a lot, Sharad. This really helps.

Sruthin