Tds on payments for facebook ads management

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Qasim (Querist)
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01 March 2019
What are the provision related to TDS on Payments made to Company incorporated Outside India(i.e NRI) .

The Payments is on account for Facebook Ads Management.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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02 March 2019 10% TDS applicable under fees for technical services under section 195.

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Qasim

Qasim (Querist)
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02 March 2019 Thanks Sir for your humble reply

I need more clarity on this issue
1.Is 10% rate as per DTAA?
2. If Earlier Payments were made without TDS what to do now ,consequentially earlier 15CA CB was inadvertently issued mentioning no TDS required deducted?
3.Whether we have to bear the TDS on all payments by way of grossing up.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 March 2019 1 10% TDS is as per income tax Act Under fees for technical services.
2 Deduct it now.
3 yes.

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Qasim

Qasim (Querist)
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03 March 2019 Thanks again

Can't we get benefit of not deducting tax, by arguing that, as the company is NRI and rendering of facebook ads management services is outside India.

No person of company comes to India for such work as this service is rendered digitally.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 March 2019 No TDS applicable on Facebook ads for payment made to Facebook but 6% equilibration levy applicable.
This service fall under fees for technical services. TDS applicable even service provided from outside India.

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Qasim

Qasim (Querist)
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04 March 2019 Thanks sir .

It is more clear now.

Qasim

Qasim (Querist)
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05 March 2019 Is this service is not covered by the part of thevsubsection 2 of the section of definition of specified service (I. e. service for the purpose of online advertisement) for purpose of online advertisement for equalisation levy.
‘Specified Service’ is defined as follows:
(1) Online advertisement;
(2) Any provision for digital advertising
space or facilities/ service for the
purpose of online advertisement;
(3) Any other service which may be notified
lat

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 March 2019 You are right it will fall under service for online advertisement.
TDS not applicable and equilibration levy applicable.

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