08 March 2011
An Indian company has placed an advertisement in foreign company magazine. For this purpose the Indian company has to pay the amount.
The foreign company does not having any permanent establishment in India & even does not having PAN Card . As it confirmed the same & confirmed that it is their Business Income as per Article 7 of DTAA.
So whether we have deduct the Tax 20 % on the basis of Sec 206AA or No tax as it is on the basis No permanent establishment.
CAclubindia
