Application of tds on on-line tests

This query is : Resolved

Ramesh Chander (Querist)
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06 January 2016 I need expert advice on application of income tax on import of On Line Tests from USA.
We are getting conflicting views from different CA's and importers. I will be thankful if some can guide us.

Ramesh chander

Guest

Guest (Expert)

06 January 2016 Sir - ascertaining taxability of online modules & softwares etc is complicated. It would be naive on my part to answer it without going through the terms and conditions subject to which you import. Further DTAA with USA is peculiar and not like the same with other countries. So it requires personalized suggestion

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 January 2016 No TDS and service tax applicable on import of goods for which only customs duty is payable.
For import of services both TDS and service tax applicable.
Is it on line test conducted in India and what is the test.

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Ramesh Chander

Ramesh Chander (Querist)
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06 January 2016 There are different views on the income tax on import of on line test. In this one imports Test software and the person files his reply and send back for assessment. Clarification on this is not available.
Can some one, who is dealing similarly can through some light on this. The exporter does not show any interest in this matter. We are in a fix as the said payment of 20% tax we wipe out our share completely.

We shall be grateful if somebody can through some light

Guest

Guest (Expert)

06 January 2016 Can you clarify further? If I am importing the test, is that coming in CD? Will the CD give the result of the test automatically or is there any manual intervention by the exporter to the person taking test?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 January 2016 Both service tax and TDS applicable on this include tax effect in the fees collected.