An Indian company enters into a contract with a foreign company ( based on Singapore) to get certain market research services.Please let me know whether the payment maid by Indian company to Singapore company is liable to tax deduction considering following points in this regard:
1. Singapore Co has no PE in India. 2. It conducts research in Singapore and report send to Indian company via mail.
16 October 2010
The question in your query remains wheather the research services are covered under the definition of technical fees as per DTA between India and Singapore or not. Apperantly from the limited facts avaiable from your query it seems that it is marketing research, if yes, then it shall not be covered under the difintion of technical fees as per Indo-Singapore DTAA, thus not liable to tax in India. Though for a detailed analysis more facts would be required. If you wish you can write at taxindiaconnect@gmail.com
17 October 2010
In view of the Finance Act,2010 , now no need to look into the two situations referred in the querry if it is a "fee for technical service" which attracts section 195. The issue is to judge whether the payment for market reserch service comes under section 9(1)(vii) of the Income tax Act,1961.
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