Do we pay tds for vendor payments made in foreign countries?

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K Nijesh Gatruda (Querist)
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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

Amol S Joglekar

Amol S Joglekar (Expert)
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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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