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TDS on Foreign Payment directly on Website

TDS 192 views 2 replies

Deepshikha Sharma

Tax Manager

137 Points Joined August 2020

Whether TDS is applicable on any payment made online to a Foreign Vendor. Vendor is an online website for "Importer search Engine" where you can search for potential customers for exports to different countries.

Whether TDS is applicable on such online foreign payment done on website directly.

Replies (2)

Income Tax Wala: (Fin. Expert)

Chartered Accountants

2015 Points Joined August 2010

In my view no TDS applicable. as the services are provided by the foreign vendor out of India. Next is we do not deduct tds of we pay in India to Google for SEO activity. let me know if i am wrong.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Joined November 2019

If the payment is in the nature of Business income of NR recipient, it requires a TDS only when the NR recipient has a Business Connection/Permanent Establishment (PE) in India. However if the payment is treated as FTS then regardless of the Permanent Establishment in India, a TDS is required u/s. 195