URGENT !!!!NRI TDS

This query is : Resolved

Priya Sharma (Querist)
Follow

01 October 2009 An Indian Company is making payments to an entity incorporated outside India for dispalying its advertsiements on foreign net, ie.it has purchased some space from that company for displaying its advertisements on foreign net abroad.

So my ques is when the Indian Company will be making payment to outside party will it be reuired to deduct TDS on the same and pay remaining ?

Plz suggest its urgent

Plz quote the relevant sections and other source also

Rgds

Priya

Chinmay Kamat

Chinmay Kamat (Expert)
Follow

01 October 2009 Yes. the indian company will have to deduct tax. plz refer to s 195

also, it'll need to file form 15CA and 15CB u's 195(6). for more info on that go to http://www.incometaxindia.gov.in/

hope that helps. can u let me know how it goes coz i've only a theoretical knowledge in d topic and i've handled only 1 such case.

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
Follow

01 October 2009 Yes. Its compulsory. I am also handling a same client. In my case, we are making payment to Google. But the agreement with us was done by Google India. So we are deducting TDS on the payment @ indian companies. But if you are making payment to some foreign company, then you will have to deduct TDS u/s 195, but keeping in mind the provision of Double Taxation Avoidence Agreement also.

Upgrade to CAclubindia Pro. Subscribe Now!