Payments to foreign company
This query is : Resolved
24 December 2011
Dear CAC Members,
I have query regarding payment made to foreign company by a Indian Company for subscription of online magazine .Whether Tds provisions is applicable to the assessee U/s sec 195 of the Income Tax Act.It would be great help if you give me the solution for same.
Regards
DINESH
I have query regarding payment made to foreign company by a Indian Company for subscription of online magazine .Whether Tds provisions is applicable to the assessee U/s sec 195 of the Income Tax Act.It would be great help if you give me the solution for same.
Regards
DINESH
25 December 2011
Could be taxable under act. Refer sec 9.1.6 & 9.1.7.
Also check dtaa provisions. Recent Samsung ruling applicability.
Would depend nature of information from online magazine. Generally this is non taxable item.
Also check dtaa provisions. Recent Samsung ruling applicability.
Would depend nature of information from online magazine. Generally this is non taxable item.
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26 December 2011
Dear Dinesh , in this case tax is not deductible provided the company publishing the magazine does not have any business connection in India, therefore no part of its income is deemed to accue or arise in India.
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26 December 2011
The same shall be taxable , in terms of 2 recent Karnatka High Court Rulings in cases of Infosys & Wipro.
Anuj
+91-9810106211
femaquery@gmail.com
Anuj
+91-9810106211
femaquery@gmail.com
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26 December 2011
@ Vishal D Shah Thanks alot.
@ CA Abhishek Rana Thanks alot for the valuable information.I too thought the same.
@ CA.Anuj Gupta I refered the Wipro case Vide CIT vs Wipro Ltd vs ITO (2005)4(II)ITCL 268 (Bang "B" Trib):(2005)94 ITD 9(Bang-Trib):(2005)92 TTJ 796 (Bang Trib):2005 1 SOT 663(Bang-Trib).In this case bangalore tribunal favoured the assessee ie no need to deduct TDS.
So we have to follow the tribunal or the karnataka high court Sir.Please could you quote the case no of the high court judgement sir.Eagerly awaiting for the reply.Anyway thanks alot sir.
@ CA Abhishek Rana Thanks alot for the valuable information.I too thought the same.
@ CA.Anuj Gupta I refered the Wipro case Vide CIT vs Wipro Ltd vs ITO (2005)4(II)ITCL 268 (Bang "B" Trib):(2005)94 ITD 9(Bang-Trib):(2005)92 TTJ 796 (Bang Trib):2005 1 SOT 663(Bang-Trib).In this case bangalore tribunal favoured the assessee ie no need to deduct TDS.
So we have to follow the tribunal or the karnataka high court Sir.Please could you quote the case no of the high court judgement sir.Eagerly awaiting for the reply.Anyway thanks alot sir.
27 December 2011
Dinesh, Learn simple things . An High Court Order is manadatory to be followed and it overules or confirms an ITAT order.
Anuj
+91-9810106211
femaquery@gmail.com
Anuj
+91-9810106211
femaquery@gmail.com
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27 December 2011
@ CA Anuj Gupta ok Sir.So we have to deduct TDS, May i know at what rate it should be dedcuted incase the foreign compnay does not have PAN no.May i also know case no of the high court judgement.
27 December 2011
CIT v. Wipro Ltd. (ITA No. 2804/2005, dated 15 October 2011.
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27 December 2011
CIT v. Wipro Ltd. (ITA No. 2804/2005, dated 15 October 2011.
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27 December 2011
TDS shall be deducted @20% if the foreign party doesn't have PAN.
Anuj
+91-9810106211
femaquery@gmail.com
Anuj
+91-9810106211
femaquery@gmail.com
Message likes :
1 times
27 December 2011
@ Vishal D Shah thanks alot !!!
@ CA.Anuj Gupta ok sir so it should be deducted u/s 195(g)@ 20%
http://www.saraltaxoffice.com/resources/tds-rates.php
Anyway thanks alot Sir.It was great help for me.
@ CA.Anuj Gupta ok sir so it should be deducted u/s 195(g)@ 20%
http://www.saraltaxoffice.com/resources/tds-rates.php
Anyway thanks alot Sir.It was great help for me.
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