TDS on Payment licence fees to Foriegn Government

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Parixit Namdhar (Querist)
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11 November 2008 We are Pharam Company seeking licence from some foriegn governments for sale our products there. Is there and TDS applicable on our payments for licence fees?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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11 November 2008 Licence fro foreign Government?or company?
What sort of licence?

Parixit Namdhar

Parixit Namdhar (Querist)
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12 November 2008 Licence from foreign Government designated Department and licence for the sale of medicine in their country.

Parixit Namdhar

Parixit Namdhar (Querist)
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12 November 2008

Ram Avtar Singh

Ram Avtar Singh (Expert)
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12 November 2008 No TDs on Govet Body for obtaining Licence.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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12 November 2008 On the licence fee TDS is applicable. They can claim credit for the same if DTAA exists between countries.

Parixit Namdhar

Parixit Namdhar (Querist)
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12 November 2008 U/s 195 it is mentioned that income should be chargeable for tax under income tax law. Is licence fees in hands of government is taxable?

Parixit Namdhar

Parixit Namdhar (Querist)
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12 November 2008 Who can claim credit?

Parixit Namdhar

Parixit Namdhar (Querist)
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12 November 2008 And what would be the rate of TDS?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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12 November 2008 Is it government or other than government is not clear from your query.

Parixit Namdhar

Parixit Namdhar (Querist)
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12 November 2008 This is government boss.