The Section 195 Trap
Paying a foreign vendor, consultant, or platform?
You may be legally required to withhold tax before remitting.
Section 195 makes the payer responsible—fail to deduct, and you bear the tax plus penalty, not the foreign recipient.
Countless businesses pay overseas software, freelancers, and services without withholding, creating hidden liability.
Cross-border payments carry domestic obligations.
Do you know your withholding duties before you pay anyone abroad?
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Divakar Vijayasarathy
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The Section 195 Trap
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