Withholding Tax on BoothSpace Booking Chg to NR

14 January 2020
An Indian Company is making payment to a German Non Resident for Booth Space Booking which includes : (1) Payment for Raw Space, (2) Professional Fees, (3) Other Charges in total amounting to 10000 Euro. Is there any liability for deducting Withholding Tax and issuing 15CA/CB. If yes, at what rate and if not, what justification can be given.

The activities are taking place at Germany itself. As per Article 7 of Indo German DTAA, "profits of an enterprise of a contracting state shall be taxable only in that state." Accordingly, can it be concluded that since the profits are not taxable in India, no liability of withholding tax and only 15CA be given in the case.

Kindly suggest urgently.

Amol S Joglekar (Expert)

Click to Talk 14 January 2020
Yes, you are right. No liability to deduct withholding tax for this transaction.

swasti (Querist)
14 January 2020
Thanks a lot Sir for expert guidance.

Amol S Joglekar (Expert)

Click to Talk 15 January 2020
you are most welcome.

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