Tds on payment for purchase of domain name to non resident
This query is : Resolved
24 September 2011
I am purchasing a domain name from a non resident and I have to make a payment of more than 1500$ online. My queries are:
1. Whether TDS has to be deducted on such payment? If yes at what rate?
2. If I dont have any TAN No. and also the non resident is not having PAN No., how will we both comply with the TDS issues? Do we both have to apply and comply with all the proceedings (return filing etc.) just for this one transaction?
3. If TDS is deductible, the method will be inclusive or exclusive?
4. Will there be any consequenses from Double Tax Avoidance Agreement (DTAA) provisions?
1. Whether TDS has to be deducted on such payment? If yes at what rate?
2. If I dont have any TAN No. and also the non resident is not having PAN No., how will we both comply with the TDS issues? Do we both have to apply and comply with all the proceedings (return filing etc.) just for this one transaction?
3. If TDS is deductible, the method will be inclusive or exclusive?
4. Will there be any consequenses from Double Tax Avoidance Agreement (DTAA) provisions?
Vishal D Shah
(Expert)
24 September 2011
Since no income shall be accruing or arising to the non resident for sale of domain name in India, payment shall not be taxable in India. And since the same is not taxable, liability of resident payer to deduct TDS u/s 195 does not arise.
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