Dear Sir,
We are a manufacturing company. We imported electrodes from China (say USD 100). These electrodes can be used as it is. But to increase the durability, electrodes purchased from China is diredtly sent to Germany for Coating of Graphtire on it. Coating charges includes material part also (say coating charge is USD 25) Company at China and Germany are different. Payment is made to company at china and Germany Seperately. We are paying import duty on both material cost charged by China and Graphite coating charge charged at Germany (i,e import duty paid on USD 125) . Kindly advise whether coating charge payment to German compaany attracts TDS under FTS or other whether the whole transaction is a import purchase transaction and no TDS liabilty attracts ??
Regards
Siva