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).
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.