Tax on Foreign remittance for Designer

Thakur (Proprietor) (25 Points)

28 December 2010  

My client is Star rated Export house of Footwear’s. Footwear being a fashion product, requires trend & forecast of the European market, so that the company may launch their latest collection in fairs held in Europe.

Foreign designers located in Italy, Spain & Austria survey the European Market & send us the sketches for the upcoming trend.

These sketches are bare concept of the upcoming trend.

On the basis of these sketches the team of designers in India conceptualizes the sketches & finally makes a model of footwear.

Please advice, if the payment made to these non-resident designers is liable for withholding tax.

a.   They do not have any establishment in India

b.   They do market survey in Europe & then submit us sketches

c.   We use these sketches to make footwear model to display in Europe fairs, procure export orders & then make export of these designs.