Tds on payment to facebook


This query is : Resolved 

20 August 2012 Our company is making a payment to Facebook through a process in which we have given our credit card details to them and they deduct amount in Rs from it as per clicks on our ad.

The invoice is raised by facebook company registered in IRELAND daily and invoice is in INDIAN RUPEES.
Whether TDS needs to be deducted on this payments? if yes under which section and which rate as this company obviously doesn't have a PAN number.

20 August 2012 Dear Harcharan ji .. you have not mentioned that what services or other things have been provided to you by facebook company in your query.
So this is not a clear question..
give more details, then we can give answer of your query.

20 August 2012 I think Tds need to be deducted u/s 194 c @ 2 %

20 August 2012 Dear Hemant,
We are advertising on Facebook. Facebook shows our logo on some pages and whenever someone clicks on our add we are charged on pee click basis.

21 August 2012 According to definitions given in charging section 195, no TDS need to be deducted.

22 August 2012 It is not taxable in india and tds is not required to be deducted at source u/s.195.

22 August 2012 Dear Hemant,
I need some more clarity on this as in this case how do we determine that the income is not taxable in India.
This company has its registration in Ireland and the advertisement is on its website who's server is also not in India so can this be sufficient to prove that income doesn't deem to accrue in India and is not taxable.

22 August 2012 Yes, Mr. Harcharan you are right.


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