TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2010 We are in process of making payment to non resident in Malaysia for

1)Annual maintenance fees for 80 licences of our ERP (MACOLA Software)

2)5 additional licences we are purchasing.

Is TDS is applicable U/S 195 payment to non resident?

Is tds deductible from invoiced amount or it is paid over and above invoiced amount than grossing up is applicable while making TDs payment?

sivadas chettoor

sivadas chettoor (Expert)
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05 July 2010 If the payment involves any element of income which is taxable in India, then TDS is applicable.Anyway to avoid the risk it is better to move an application before the ITO.