Payment to other countries for software royalty

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Hi,

    We are running a software company and have recently got distribution rights for software product in India.We need to pay fix percentage of sales to the company having copyright of the product. That company is based in Singapore. Do we need to pay any Service tax or deduct any TDS before making any such payment. What are the tax implications on such royalty payment & sales.

Sandeep

Replies (1)

Yes there shall be TDS deduction implication under Income Tax Act, 1961.

 

Regarding Service Tax , I am not sure whether the same will qualify under import of services.

 

 

Anuj

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