TDS on payment to non - resident

vidya nair (Service) (28 Points)

27 September 2011  

Payment to Non-resident

For online Payment made to facebook for advertisement services provided, do i need to deduct TDS @ 20% if Facebook do not have any permanent establishment in India ?

In all other online paymentS for advertisement (Eg.Google etc. who have permanent establishment in India), we bear the TDS ie if online bill is for 100, we have considered it as if it is net payable after deducting TDS and we have booked Advertisement of 102/- in the books.

But in case of payment to facebook, who do not have permanent establishment in India and income earned by facebook is also not taxable in India, do I need to deduct TDS @ 20% ?

If yes, is there any specific form for Non-resident for TDS Return or Form 26 Q will cover non – resident transactions also ?

Please guide me…..