Hello,
We have recently started our venture and in one of the first orders we received data packets from Abroad via internet which we have further provided to one of the clients in India.
We have charged service tax @ 10.3% to the Indian customer and deposited this amount with service tax dept.
Now we want a clarity that whether we should have deducted TDS while paying the foreign body or not? We are getting a mixed opinion on this fact. Moreover when i checked with this foreign firm they are not ready to pay any tax in India and taxes if any has to be borne by us.
Kindly let me know, if in this case Service Tax/TDS should be deducted while making the payment for importing any data packets or services through internet from abroad or not ?
Also let me know, if the foreign firm declines paying any tax then we'll have to bear any tax?
Best Regards,
Ashwani
CAclubindia
