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Want to pay membership fee (subscription) to a foreign co.

This query is : Resolved 

01 November 2012 We are Pvt Ltd company engaged in Software and website development. We want to become a partner for a company in USA, which provides a open source software for ecommerce. They will charge annual subscription fee for making us partner and listing us in their website online. The amount is approx. $3000 per year.

My questions is - do we need to pay any service tax or any TDS on this fee amount which we want to pay by sending Wire transfer from our Bank?

02 November 2012 According to me the nature of transaction is "Business Income" and accordingly no TDS should be deducted- provided the foreign Co. doesn't have an PE in India & TRC from Income Tax Department of USA is provided by US Company.

Anuj
femaquery@gmail.com


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