Do we pay tds for vendor payments made in foreign countries?
This query is : Resolved
K Nijesh Gatruda
(Querist)
05 December 2012
Hi,
We have a Pvt. Ltd. company based in India and our business is SMS re-selling. We purchase Bulk SMS from vendors in UK, Australia, USA and re-sell them to our clients (in USA, UK, Europe etc).
We do not have any contract with most of the vendors (except with few where we have a re-seller contract).Do we need to deduct TDS in India while making payments to these vendors?
As I understand, SMS purchase would not fall under "commodities" or "services" (the invoice raised by vendors says - Invoice for xxxx SMS Units).
Please advise.
Thanks,
K Nijesh
We have a Pvt. Ltd. company based in India and our business is SMS re-selling. We purchase Bulk SMS from vendors in UK, Australia, USA and re-sell them to our clients (in USA, UK, Europe etc).
We do not have any contract with most of the vendors (except with few where we have a re-seller contract).Do we need to deduct TDS in India while making payments to these vendors?
As I understand, SMS purchase would not fall under "commodities" or "services" (the invoice raised by vendors says - Invoice for xxxx SMS Units).
Please advise.
Thanks,
K Nijesh
Amol S Joglekar
(Expert)
05 December 2012
Income tax TDS is not required to be done in this case. This might involve SERVICE if you are giving any service along with re-selling.
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