Tds on exhibition charges paid to foreign company

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2012 What is the applicable rate of TDS (IT Act and DTAA) where payment is made to Foreign company (UK based) towards exhibition charges which comprises of following:
[1] Grant of license to install a booth on the exhibition space provided (booth shall be provided by them)
[2] Full page advertisement in Event guide
[3] Utilities in the form of power supply,etc

Note that exhibition is held in India

Pankaj Gandhi Jaiswal

Pankaj Gandhi Jaiswal (Expert)
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10 March 2012 For deduction of TDS in case of Payment made to NR 1st thing we have to look that the payment amount should be income which is taxable in India and if this is not taxable in India then question of TDS does not arise, in given case the income of exhibitor neither accrue nor arise in India hence no income in India and NO TDS will be applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2012 Thanks for replying, but please note that exhibitions were held in India and therefore all services (i.e providing space to install booth, providing shell (tambu) for that booth, providing utilities like electricity, water,etc for functioning of booth and allowing advertisement in the event guide) all were rendered by the foreign company in the exhibition which was in India. Therefore it follows that all services were rendered in India and since payer of income is an Indian co. services are therefore utilised in India. Therefore the income accrues in India and hence taxable in India. Therefore question focuses on rate of TDS??

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