06 February 2014
purpose of work- Advertisement place sold for say one year To whom payment is being made - Mr x or his company in Brazil (which ever is beneficial for us) Payment made by Indian company - payee does not have PAN or permanent Establishment in India
Whether TDS is applicable ? as per which Provision?
06 February 2014
well payment is to be made with the entity which owns the right to that advertisement space...so you may not have too much flexibility on this front.
With regards to TDS, Section 195 shall apply..TDS rate shall be based on analysis of DTAA and the tax-act provisions.
In absence of PAN, 20% or the higher rate (as per DTAA or indian-tax act) shall apply.
06 February 2014
Check for Article 6 - Income from immovable properties (if the property which has been rented out for advertisement space is within the definition of immovable property), Artcle 12 - royalty.
If not covered anywhere, you need to cover under Article 22.
06 February 2014
In article 6 1. Income derived by resident of a Contracting state from immovable property situated in the other contracting state may be taxed in that other state. HERE WRITTEN THAT SITUATED IN THE OTHER CONTRACTING STATE ( india) but in question immovable property is situated in Brazil and income also derived in Brazil
CAclubindia
