Tds on non resident payments
This query is : Resolved
Ramalinga H.B
(Querist)
05 September 2012
Hi Experts,
X Ltd has taken a server on rental basis situated in US country and pays rental charges in US$ to a non resident company which doesn't have any PE in India. In tern X Ltd will sub-let/sub-lease the server to an Indian company and billed in INR. Should X ltd withold the tax on the payment to US company. if yes pls provide any department/court clarification on this. Bcoz plain reading of Section 195 says if the income is taxable in india u/s 9 of IT Act, then only tds applicable as per 195.
Thanks in Advance.
X Ltd has taken a server on rental basis situated in US country and pays rental charges in US$ to a non resident company which doesn't have any PE in India. In tern X Ltd will sub-let/sub-lease the server to an Indian company and billed in INR. Should X ltd withold the tax on the payment to US company. if yes pls provide any department/court clarification on this. Bcoz plain reading of Section 195 says if the income is taxable in india u/s 9 of IT Act, then only tds applicable as per 195.
Thanks in Advance.
CA. Anuj Gupta
(Expert)
06 September 2012
Yes,
Anuj
femaquery@gmail.com
Anuj
femaquery@gmail.com
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