TDS Deduction for entities not having permanent establishmen

Abdul Muneem (Director) (24 Points)

27 March 2011  

Hi all,

This is my first post on this forum. We are facing a problem relating to TDS. I hope some of you in the forum can be of help to us. We are technology company and we are authroized reseller for Google Apps (This is a emailing service similar to gmail or rediffmail or hotmail). This is hosting services from Google. Google Ireland will  be billing Brio. Brio will do billing to its customer. We get some x percentage on the hosting services provided. Eg: - Brio will bill its customer100/ - and Google Ireland will bill Brio $2 (Rs. 95/-) and the difference is our earning.

  1. My first question is what is the percentage of TDS to be deducted by our customers for such services? Will it be under 194C or 194J?
  2. Google Ireland does not have any permanent establishment in India. They do not have any PAN number. So are we liable to deduct TDS when we make payments to them. And if we are supposed to deduct how we should remit the TDS when they do not have any PAN here?

India had DTA (Double Taxation Agreement) with Ireland.

I hope to hear from any one of you soon.

Regards

Abdul Muneem