TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2010 Dear Experts

X Co is doing Web development Business earnings are in USD and making payment for Advertisement expenses in USD to the forieng countries.

My query is we need to deduct TDS or not, if yes at what rate.

Pls clarify

CA Manikandan.A.V

CA Manikandan.A.V (Expert)
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16 December 2010 You need to be more clear with your question. If you are asking about Professional charges paid to NRI for web development TDS is laible u/s 195.

Querist : Anonymous

Querist : Anonymous (Querist)

16 December 2010 not professional charges it is advertsement expenses payment.

Clarify

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CA Manikandan.A.V

CA Manikandan.A.V (Expert)
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16 December 2010 In the case of any payment other than Technical consultancy services, in your case, Advertisement charges the taxability of income in the hands of NRI is to be considered u/s 9. If the same is taxable and there is no DTAA between the two countries, TDS u/s 195 is applicable. If there is DTAA, taxability is as per the DTAA.

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