Section 195 clarification

This query is : Open

Ravi Kumar (Querist)
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29 November 2012 Our's a manufacturing Company remitting some USD to Non Resident Company(Germany). NR Company maintaining a website where our range of products will be displayed and for this purpose we are remitting the sum. This is sort of subscription charges paid to them. NR has no PE in India My Question is Whether TDS required to be deducted on the remittance?
Pls give your valuable openion on the same

Arihanth Jain

Arihanth Jain (Expert)
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30 November 2012 Seems transaction is mere in nature of advertising/marketing expense and should form part of business income of NR. As such with no PE, tds will be Nil as per treaty.

However procedurally if there is no PAN, tds shall be 20%.