Non-Resident Indian Payments: How Much TDS to Deduct and What Documentation is Needed?

If a company has to make a payment to a person who has been staying outside of India for over a year, in his bank account in India, then how much TDS needs to be deducted? Does the company need to maintain any documentation for this purpose? How will the payment be shown in the accounts books? Please advise.

Who is this payee, an Indian employee working outside India for you, or a contractor working for you? What else? TDS also depends on the nature of payment and the relevant financial year it pertains to. Please provide some more details.

Payee is an Indian employee working outside India for me. This is for the financial year 2018-19. The nature of payment is marketing services.

As the "Payee" is an Indian and an employee, and the remuneration is to be 'Salary' that is to be 'earned,' 'credited' in an Indian bank, it's subject to the Indian IT Act. Therefore, the TDS is at the rate applicable for anybody else ordinarily resident in India.

Now the question arises if he is to be considered an "NRI." I am still not clear about his NRI status; subject to this, the applicability undergoes changes.

Also, please read the attached material on TDS for NRI.