Foreign company (X) is providing a software service from US
Our company (Y) is an indian company is availing of the service
Price agreed was without taxes with liability of taxes applicable in india resting with our Indian company
For the service, X provides monthyl invoice in usd.
Our company has paid the amount in usd but deducted 15% as TDS. accounts person says that tds certificate can be provided by us each quarter which company X can claim
Is TDS applicable for such foreign payment . If yes how would the foreign company claim it in US ? or a procedure to claim exist in India
Thanking you,
Sameer Shaikh
CAclubindia
