26 April 2013
sir, as we are hired a service in dubai for a television show for dubai tv. now we are transfering monies to our service provider he dont have an office in india. (no PE in india) should we deduct withheld tax on this transfer ?
26 April 2013
Nature of service is an important factor if the service is performed outside india than income do not accrue or arise in India hence no TDS deduction required in case of payment.
It will not make any difference for PE as it is payment for FTS and it will accrue based on performance and not on the base of PE