Haresh Bhanushali (Accountant) (89 Points)
22 July 2009
Hello, Please advise whether withholding tax U/s 195 needs to be deducted on following payment: Metal Expert News (individual subscripttion)
Location of the receiver is in USA and he has no permanent establishment in India.
Thanks & Regards
PHANI
(Practising Chartered Accountant)
(156 Points)
Replied 23 July 2009
Hi Haresh,
As per clause (7) of DTA between India and USA, The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. Since you have mentioned that there is no PE in India, there is no need to deduct any withholding tax. However, one has to take the practising CA certificate to this effect before making any payment.
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