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
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.
CAclubindia
