Tds liabilities u/s 195


This query is : Resolved 

23 February 2013 Dear Sir,

We are software exporter, now we want to advertise in oversease news papers in overseas & want to payment from India. Is there any TDS Liabilities u/s 195.

Regards,

Yogesh Kumar

23 February 2013 Hi,

If payment is made to non resident no TDS would be attracted.

Thanks!!

23 February 2013 don't agree with VaibhavJ
if you are making payment to outside india, TDS will be applicable as per sec 195

you must consider DTAA for this also. it differ country to country

23 February 2013 can you give any case refrence or supporrting details

23 February 2013 I have checked DTAA list on incometax site that country is not showing in list.
now what should we do.

23 February 2013 Hi,

As per Article 7 of Agreement for avoidance of double taxation of income with
USA,The profits of an enterprise of a Contracting State shall be taxable only in
that State unless the enterprise carries on business in the other Contracting
State through a permanent establishment situated therein.

Accordingly, It is not taxable.

Thanks!!


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