Akhila Vinnakota (Audit Senior) (39 Points)
09 November 2017hello Everyone,
Can someone clarify whether the payment made for Ad Campaign services received from a US Company is subject to TDS or not?That US Comapny has Tax Residency Certificate & No permamnent Establishment in India
If it is liable for TDS, kindly let me know the respective sections under IT Act and Respective article under DTAA?
Thanks in advance.
p.sunil kumar reddy
(Article trainee)
(41 Points)
Replied 10 November 2017
BASED ON THE INFORMATION PROVIDED,
THERE IS NO NEED OF DEDUCTING TAX ON PAYMENT AS IT IS IN THE NATURE OF BUSINESS PROFITS(ARTICLE 7 1ST PARA)AND NOT IN THE NATURE OF ROYALTIES UNDER DTAA (IN ORDER TO BE IN THE NATURE OF ROYALTIES ,THE PAYEE SHOULD GIVE THE POSSESSION OF SUBJECT TO THE ASSESSE FOR USE..BUT IN THE SERVICE YOU ASKED ABOUT,THE TOTAL RESPONSIBILITY OF AD WILL BE TAKEN BY PAYEE)..
CAclubindia
