Tds liability on annual maint of software outside india
This query is : Open
CA Tarun Girdhar
(Querist)
12 December 2012
One of our client using software which is operated by Australian company and they are charging maintenance charges of that software. which is paid by us in foreign currency.
that company doesn't having any establishment in india. whether this is liable to TDS & service tax.
if yes than at what rate.
that company doesn't having any establishment in india. whether this is liable to TDS & service tax.
if yes than at what rate.
CA Roshan Jha
(Expert)
13 December 2012
In my opinion, the Tds has to be deducted as the nature of payment is in nature of royalty and hence tds should be deducted under section 195. Service tax also needs to deduced as per reverse charge mechanism. However if DTAA is there in place with that country, than tax treatment shall be done as per DTAA.
13 December 2012
In continuation to Mr Jha.....
Procedure of Form 15ca and 15cb is to be followed.
Procedure of Form 15ca and 15cb is to be followed.
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