Tds on payment to non resident in foreign country

Carol (Accountant) (40 Points)

27 December 2013  

Below are the details:

  • Person in Russia have developed a web service similar to gmail being served from USA.
  • Customer of this services are based in other countries ( excuding india )
  • My client has to pay 50% of profit made on sales of this service to person in Russia.

I want to know if TDS is applicable on such payment or not? And how to remit this money to person in Russia? 

Note: Consumer of this services are not located/based in India