TDS on income of Foreign Company

Dear Sir,

Our company has subscibed to the Google Adwords service available on google.com site. Google Inc. is a non-resident. My CEO pays them for services directly by credit card. The amount of service is based on the no. of clicks. Now the company wants to reimberse my CEO for payment made by him on behalf of the Company.
Please note that Google Inc. USA has a subsidiary in India (Google India Pvt. Ltd.)

My Query:
1) By having a subsidiary in India, will that mean that Google Inc. is having a business connection in India as per sec. 9 (1) of the IT Act.
2) Whether such payment is considered as income deemed to accrue and arise in India
3) Whether the amount which we (CEO) have paid is liable to tax in India.
4) Whether TDS is required to be deducted from such payment?
5) Should company continue with the current practise of reimbersing to the CEO for the payments made to Google Inc.

Please reply.

Regards

CS Malav Shah