Tds for payment outside india

Manjunath (Chartered Accountants) (42 Points)

22 November 2011  

Hi,

My Indian client's customer (in USA) needs some survey work (in US/UK) to be done for him. my client outsources this job to a company in US/UK. my client receives money from the customer, out of which the payment need to made to the company which carried out the outsourced work. There is no relationship either with the customer or Vendor. There is no PE of such vendor / customer in India.

Please let me know whether Tax shall be deducted while remitting the money to the vendor. If yes, under which Article of DTAA and at which rate  it shalle be deducted?