TDS on Software Service Purchased from Lithuania

Save Share

This query is : Resolved

Sudipta Sen (Querist)

15 June 2011 I am planning to purchase a software service from a company based in Lithuania (Europe). It is a Software as a Service (SaaS) model, where I need to pay monthly to this company for using their services.
I shall resell the service here in India.

I have been told by my bank that I need to submit Form 15CA acknowledgement and Form 15CB (CA Certificate) along with coipy of invoice received from my vendor (the Lithuanian Company) for making the payment in Euro.

Now, Form 15CA and 15CB asks about the TDS rate and DTAA rate applicable here. As far as I can google, DTAA agreement is not there between India and Lithuania.
For the applicable TDS rates, I have consulted section 195J but cannot understand which area, like royalty or fee for technical services apply for this case.

I need urgent help in finding out the TDS rate applicable here.

The service I am purchasing is a Web based application. I purchase the user access rights in bulk and will sell retail.

Please Help.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

16 June 2011 Kindly deduct TDS @ 20% since the foreign company shall not be having PAN. If the PAN is there then the rate is 10.51%.

Anuj
0-9810106211

Message likes : 1 times

Sudipta Sen

Sudipta Sen (Querist)

16 June 2011 Sir, Many thanks for the reply.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now