Tds on exhibition of foreign parties

This query is : Resolved

Praveen kumar varma (Querist)
Follow

21 October 2011 Dear Sir,

Pls give me advice

we paid exhibition charges paid foreign parties in located in France.pls advice we have deducted TDS on payment or not.If yes give details

regards
Praveen

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
Follow

21 October 2011 Normally there should be no TDS but if foreign party is willing to bear the tax then you can deduct 10.51%(if FC has PAN) otherwise 20%.

Anuj
+91-9810106211
femaquery@gmail.com

Message likes : 1 times

Arihanth Jain

Arihanth Jain (Expert)
Follow

21 October 2011 Agree with Anuj Sir, tds should be nil.

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

Praveen kumar varma

Praveen kumar varma (Querist)
Follow

22 October 2011 thank you sir,

but why not Deducted TDS.

pls give me any articles

Regards
Praveen

Maninder Jain

Maninder Jain (Expert)
Follow

22 October 2011 If the exhibition is held outside India & exhibition charges are also paid in foreign country, there is no question of TDS. As work is being executed & paid outside India, TDS does not arise at all.

Arihanth Jain

Arihanth Jain (Expert)
Follow

22 October 2011 Article 7 - business profits of the relevant DTAA can be quoted for non applicability of the tds.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
Follow

22 October 2011 Although the conclusion by Maninder is correct but the reasoning thereof is not correct according to me.

Reasoning by Arihanth is correct.

Anuj
+91-9810106211
femaquery@gmail.com