Query about TDS on Foreign Remittance
Querist :
Anonymous
(Querist) 05 January 2011
This query is : Resolved
Dear Sir,
Can u please help me regarding the following issue :
My Client is a Co who makes payment to another Co in US for advertisement of my client in US.
So while remitting, should i deduct the TDS on the same?
If yes than at what rate?
Vineet
(Expert) 08 January 2011
I assume the non resident company is a US Resident.
1. The fee paid to US company is not liable to be taxed as fee for included services under Indo-USA DTAA as it is neither technical in nature nor does it make available any technical knowledge, know-how etc as defined in MOU signed by India and USA.
2. If the US company is not providing these services through a permanent establishment in India, the said income is not taxable under business income also.
As the payment made to US company in your client's case is not taxable in India, no TDS is deductible u/s 195.
