A publisher in United kingdom has raised invoice on a indian company in India for advertising services rendered in India. Nature of advertisement is publishing photos of our company products in Airport magzine. The publisher in UK claims that TDS cannot be deducted while making payment.
May I know if we are bound to deduct TDS @ 20% and what is the TDS rate as per DTAA?
04 November 2011
As it is been said in the query that the "ADVERTISING SERVICES RENDERED IN INDIA" so the income is generated from India hence the income is taxable in India.
Company is required to deduct the TDS . DTAA rate is 20% same is applicable.
CAclubindia
