TDS on Licence fees paid to US Company

If the sum is not chargeable to indian income tax for the US company, then tax need not be deducted. Pls. read CITvs Cooper Engg. Ltd(1967) case

Hi Friends,

If the license fees accrued or arises in India or received in india by the assessee concerned, then it is chargeable to indian income tax irrespective of status of assessee and it's residential status.

Thus, if foreign company renders service in india or received income in india in terms of license fess, then it shall be liable for indian income tax and therefore payer would liable to deduct TDS

Regards,

Manoj

Simple question.. We have to pay a company out of canada a license fee for software license which is activated over the internet. Do we have to deduct TDS while making payment of license fee? The Foreign company doesnot have an entity in India. if so what is the percentage of TDS applicable?

Do let me know..

Thanks!

Regards

Shashi