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Tds for online advertising service for cilents outside india

Nari Babu (MBA) (34 Points)

15 May 2017

We are into Internet marketing for abroad clients and our nature of work i we provide advertising services to client mostly from out sode India, and we also receive funds from other companies out side India.

Now the question is, Do we need to deduct any TDS when we r sending outward remitences ?

If yes then please tell us what will be the TDS % to be deducted and also under which section.

your help is very much appriciated.

thanq

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3 Replies

prudhvi raj (8 Points)
Replied 15 May 2017

tds percentage depends on the country to which you are remitting and to whom you are remitting (company or non company). Also, you have to file forms15ca and 15cb for remittance outside India of amounts taxable in India.

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PRINCE KHATTAR (CA-IPCC-STUDENT) (67 Points)
Replied 16 May 2017

For deduction of TDS in case of foreign companies you first have to read DTAA with the home country of that foreign company. If DTAA provides that no income of that foreign company is taxable in India then no need to deduct TDS. But if according. to DTAA, income of that foreign company is taxable in India then you have to deduct TDS.

Sriganesh (Service) (4 Points)
Replied 30 May 2017

Hi Sir,,, I have an query

Need to make foreign payments against import of services where Vendor has no PAN... TDS is 20% fine on Inv value US$ 21250/- (amount to be grossed up for witholding taxes calculation with 20%)

What should be Surcharges % and Education Cess % and SHEC %... whether is applicable or not ? If applicable let me know the % respectively for the FY 2016-17

REgards

Sriganesh