Please give your opinion on the below mentioned case: Mr. A is collecting information on various medicines, their side effects etc. in india and upload this information to a web portal of an US company. The US company makes payment to him for the same through regular banking channels.
Queries:
1. Whether US company need to deduct TDS while making payment to Mr.A ? 2. Is this income is accrued in USA and taxed in USA ? 3. Can Mr. A claim any relief under DTAA if the same has been taxed in USA ?
Note: The US company does not have any permanent establishments or any agents in India.
10 November 2012
Hi, I am not very sure about the USA taxation but if USA company is deducting any TDS to payments made to resident indians, while filing IT return, that resident can claim relief provided under DTAA with USA.