Harish Naidu (Job) (193 Points)
12 September 2011We have availed advertisement services from a Company located in London. The company has advertised our product on their website. Please let me know whether I need to pay TDS on the Foreign Remittance for this transaction
Thanks in advance.
CA Anjali Aswal
(CA)
(215 Points)
Replied 12 September 2011
Yes you have to deduct TDS on the remittance. Also you need to deposit the TDS before remitting the payment to the foreign company.
Harish Naidu
(Job)
(193 Points)
Replied 12 September 2011
Please let me know the percentage of TDS to be deducted.
CA Anjali Aswal
(CA)
(215 Points)
Replied 12 September 2011
Payment for Advertisment to foreign company comes under sec 195. If the foreign company is having PAN than 2% otherwise 20%
AJAY RITTO
(IPCC , CS EXEC)
(109 Points)
Replied 12 September 2011
Harish,
You need to get Form 15CB from a chartered accountant for every remittance out side India, because of the selfish fact that Indian RBI does not want INR to go out rather they want foriegn money to come in.
So if you see 15CB, you will understand the consequances of your payment, TDS will be applicable. Dont forget to obtain 15 CB because your Bank wont remit money unless you give them 15 CB.
Anyone can correct me if i am wrong,
AJ
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7024 Points)
Replied 12 September 2011
To me if the foreign Company doesn't have servers in India then the payment should not be liable to tax in India.
You can take undertaking to that effect and remit the money.
Anuj
+91-9810106211
femaquery @ gmail.com
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