14 July 2010
A ADVERTISEMENT AGENCY RECEIVES A CONTRACT FROM RESIDENT ASSESSEE SAY A COMPANY FOR PLACING ADVERTISEMENT IN A NEWS PAPER, MAGAZINE IN USA. WILL IT BE SUBJECT TO TDS U/S 194C OR 195 OR THERE WILL BE NO TDS.WHETHER THE ANSWER WILL BE DIFFERNT IF ADVERTISEMENT IS DIRECTLY GIVEN TO NEWS PAPER ABROAD ie. WITHOUT INDIAN AGENT. PLEASE CLEAR. THANKS
14 July 2010
If the contract is between Indian company and Resident contractor then TDS will be applicable u/s 194C. If contract is between Indian Company and Non resident outside India and for business outside India then TDS will not be applicable u/s 195.