Foreign taxation

Dear All, Indian subsidiary company needed software license to activate its software. Its holding company based in US paid the software license fee to the local IT Co. based in US (from whom license taken). Now the Indian subsidiary Co. has to make remittance to the foreign holding Co. for the software License fee. Whether the remittance would be subject to withholding tax (TDS). If yes, under what section? Regards Deepak Goel
Replies (2)

Dear Deepak Sir,

I think TDS will be attracted except in case where Indian Company is "Exporter of Softwares"(Circular No. 588 issued in 1991)3

I would suggest u to move an application to AO u/s 195(2) & obtain a tax clearence certificate.

Dear Amir, The Indian Co. is not connected with software business. As per you, the transaction would be subject to withholding tax under which section? Hey Amir, can i know something about you...i.e. Location, profile etc. i Think u spend a lot of time on this forum solving peoples queries. Good job Man Regards Deepak Goel

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