TDS applicability in case of software payments to a foreign company
This query is : Resolved
03 May 2025
One of my client is a Marketing agency based in India only he is liable for tax audit and paying 1.5 lakhs monthly for subscription fee to a software company based in US California. The foreign company has no Permanent establishment and PAN in India, what will be the TDS implications on such transactions?
Will filing form 10F and obtaining TRC from Foreign company will suffice for not deducting tds on this transaction?
Will filing form 10F and obtaining TRC from Foreign company will suffice for not deducting tds on this transaction?
03 May 2025
TDS not applicable being non resident company.
Yes, obtain TRC.
Yes, obtain TRC.
03 May 2025
Thankyou for your reply sir, but won't it be applicable u/s 195 as foreign companies are also covered in it?
03 May 2025
Section 195 TDS applicable in case of interest, dividend, royalty and fees for technical services and in case of income taxable in india.
03 May 2025
Sir, the payment of subscription fee to a software company won't be covered under technical services?
03 May 2025
It won't be covered.
See the link.
https://www.scconline.com/blog/post/2024/02/28/del-hc-subscription-fee-income-not-classified-royalties-included-services-dtaa-and-income-tax-act-legal-news-scctimes/
See the link.
https://www.scconline.com/blog/post/2024/02/28/del-hc-subscription-fee-income-not-classified-royalties-included-services-dtaa-and-income-tax-act-legal-news-scctimes/
03 May 2025
Thank you so much sir for the solution.
03 May 2025
You are welcome...
...
...
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR-1A How to update Invoice
- Excess salary payment.
- TDS on Purchase of Immovable Property by NRI from NRI
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Stamp Paper for partnership firm change new income tax 2025
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Regarding TDS Applicability For Director Remuneration
- SFT Cash Deposit in Current Account
- Annual return in Gst
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
