TDS on AMC of Software

Kashi Nath Bhagat (Manager (Finance)) (24 Points)

26 April 2011  

Dear Freinds,

I need some specifice answer in this question going to be mentioned. We had paid US$ 3500 towards AMC Charge for software maintaiance remitted in FC to Austrialia . There is no PE for the said party in India . We had booked as R&M-Computer in our books as expenses after applicable conversion rate.

Now my question is that

1. Wheather we should deduct TDS on this payment , if yes, on what rate will be applicable.

2. How it will be shows in our TDS return because the have no any PAN Number..

3.Party is not in a mood to allow deduction TDS from their payment and they have monopoly in their area and we have no option but take their service . If we bear TDS on this payment , then it will 20% or some other rate because the party have no PAN Number.

4. If we bear TDS on this payment after grossing up , can IT department allow this expesne in our company IT asessment.

This is urgent . kindly reply

Thanks

K.N.Bhagat