TDS deduction for payments to foreign companies

Sanjay (Director) (155 Points)

13 May 2010  

As per the new TDS rules, we need to deduct TDS for all payments paid to foreign companies too.

I pay website hosting companies located in US (eg godaddy.com) charges for website hosting, Server Hosting etc .
How do I deduct their TDS ? They do not have PAN number.

I cannot ask American companies to apply for PAN in India.
Even if I did, they will not apply for PAN. I am a very very small customer for them.

I obviously cannot deduct TDS on their payments. Hence I will have to pay 20% TDS from my pocket.
When filing TDS return, I will not have their PAN card numbers to put in the return.

I really wonder how this will work.

 

Any suggestions or ideas ?

 

Thx

San