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Tds deduction

Mahesh SV (Accounts Manager) (85 Points)

03 March 2018

Is TDS to be deducted on payment made to Foreign Firms by Indian Firms for hiring Exhibiton stall for Marketing activities.If so how much. Can anybody guide me please

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5 Replies

Balaji Ramalingam (Student - CA Final) (285 Points)
Replied 03 March 2018

If the exhibition is held outside India no need to deduct TDS.

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CA Naveen Chand (Chartered Accountant) (12739 Points)
Replied 03 March 2018

SECTION 195 APPLIES HERE >> PAYMENT TO NON - RESIDENTS

Balaji Ramalingam (Student - CA Final) (285 Points)
Replied 03 March 2018

If the service itself is held outside India, income doesn't accrues in India to those foreign firms. It was held by Bombay High Court in the case of Wizcraft International that, service rendered outside India is not liable for deduction of tax at source. This is my opinion please correct me if I'm wrong.

CA Naveen Chand (Chartered Accountant) (12739 Points)
Replied 03 March 2018

Originally posted by : Mahesh SV
	Is TDS to be deducted on payment made to Foreign Firms by Indian Firms for hiring Exhibiton stall for Marketing activities.If so how much. Can anybody guide me please

foriegn firms dircetly participate or an agent,

if they are dircetly participated then TDS need to deducted , otherwise not

CA Naveen Chand (Chartered Accountant) (12739 Points)
Replied 03 March 2018

Originally posted by : Balaji Ramalingam
	If the service itself is held outside India, income doesn't accrues in India to those foreign firms. It was held by Bombay High Court in the case of Wizcraft International that, service rendered outside India is not liable for deduction of tax at source. This is my opinion please correct me if I'm wrong.

u r right , i agreed !!

but the exhibitions is performed by foreign firms in India then TDS need to deduct ... if they are merely agents then not .