Tds on foreign company

Hello Sri Kumar,

You can refer the below mentioned link for your query:

/experts/tds-to-foreign-company-751740.asp#.VOLkhNj9UsM

yes, you have to deduct the TDS 

Dear Friend,

TDS u/s 195 has to be deducted only in case income accrues or deems to be accruedor arising in India. In your case if the Company does not have a Permenant establishment in India, then TDS will not be applicable as the advertisement income does not accrue or arise in India for the party.

Originally posted by : Raphael
	Dear Friend, TDS u/s 195 has to be deducted only in case income accrues or deems to be accruedor arising in India. In your case if the Company does not have a Permenant establishment in India, then TDS will not be applicable as the advertisement income does not accrue or arise in India for the party.

Hi Raphel, In this case foreign company is received payment from India. So it would be taxable in India. hence accordingly TDS u/s 195 would be applied.

can you please explain on your answered.

TDS is not applicable. As it will fall under Article 7 as business profits. You can claim exemption under DTAA of respective country and pay without deducting TDS. 

thanks

rohit

As withholding tax is a complicated matter I am keeping this bookmarked for future reference.

Regards,