Often, yes. Payments to a non-resident that are chargeable to tax in India require withholding tax, and many payments abroad also need Form 15CA, with Form 15CB from a chartered accountant.
Key points
- A tax treaty can reduce the withholding rate if the parent provides a tax residency certificate and the required forms.
- Missed withholding is the company's liability, and the expense can be disallowed until the tax is paid.
- Banks generally will not release the remittance without the required forms.
General information, not tax or legal advice. Rules change; confirm the position for your entity before acting.