Tds on design purchase from us

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pawan agrawal (Querist)
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15 February 2014 Sir,

We have purchase textile design from new jersey us through net, i want to know that the tds is applicable or not because this is a proffesional charges. if tds is applicable which rate of tds and section who is applicable and supplier is forner so pan no. not aaplicable to supplier. Our company is a pvt. ltd. company and tds is applicable
Please help me.
pawan agrawal

CA ramesh

CA ramesh (Expert)
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16 February 2014 Professional Charges paid to a foreigner/company for services rendered overseas is not taxable in India and no TDS is required. In your case purchase of textile design from US is deemded to be a service rendered aboard by a foreigner and hence no TDS u/s195 is required. Also such income is taxable in the hands of the recipient in US only. You may refer to DTAA bt USA and India