Tds on sponsorship payment to a company in usa
This query is : Resolved
24 May 2018
We are making payment to a company in USA for sponsoring an event/conference. Whether TDS is applicable for this transaction???
Kindly clarify.
Kindly clarify.
24 May 2018
Yes. TDS applicable for the sponsorship payment to non resident u/s.195
Message likes :
1 times
25 May 2018
Thanks Ramesh. If possible can you please provide any extracts for the same.
25 May 2018
Its normal provision as per section 195, any income paid or credited to non resident its covered under TDS provisions
also provided the case law for your reference
DIT v. Sahara India Financial Corporation Ltd. (2010) 321 ITR 459 (Del)]
Sponsorship of an event is not royalty
Sponsorship for popular sports events is often undertaken with the object of sales promotion especially when the title of the tournament itself is in the name of the sponsors and use of the copyrighted name is a condition for payment. But such condition to make payment cannot be of royalty, so as to require TDS at the time of payment under the terms of DTAA between India and Canada
also provided the case law for your reference
DIT v. Sahara India Financial Corporation Ltd. (2010) 321 ITR 459 (Del)]
Sponsorship of an event is not royalty
Sponsorship for popular sports events is often undertaken with the object of sales promotion especially when the title of the tournament itself is in the name of the sponsors and use of the copyrighted name is a condition for payment. But such condition to make payment cannot be of royalty, so as to require TDS at the time of payment under the terms of DTAA between India and Canada
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Off Market debit and credit transaction
- Reporting Income under Section 44ADA
- Itr 1 processing
- Building and other construction workers welfare cess act 1996
- ITR returnFY25-26
- ITR validation error - Balance sheet is not filled
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Bank Accounts in Balance Sheet for ITR 3
- ITR 1: Details for showing Exempt Income
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
