We are the manufacurers for Electrinic Items and we have participated in an exhibition at germany. We have piad stall rent charges to organisor at Germany. (Euro 7000) My question is
Wheter we have to deduct the TDS foir this
If So at what rate
Is it comming under multiple grossing
Under what section
In returrns is it to be mentioned under 26Q or 27Q
In this case the taxability of income need to be verified. The existance of DTAA between India & Germany need to be considered. As per my view the payment will not accrue any income taxable in India. So you need not deduct TDS u/s 195. Still more detailed perusal of DTAA is needed.
You may use this link to view DTAA
The following is some useful extract from DTAA from India & Germany
Words ‘subject to the provisions of paragraph (3)’ in article III(1) of Double Taxation Avoidance Agreement (between Federal Republic of Germany and India) would indicate that while ‘industrial or commercial income’ of the foreign enterprise are not taxable in India, the rents, royalties, interests, dividends, etc., derived by the foreign enterprise from sources in India are taxable - CIT v.Visakhapatnam Port Trust [1983] 144 ITR 146 (AP).
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