Tds on payments to non residents

if party don't have PAN it doesn't mean you have to bear from your pocket

you can deduct from them

BUT

will they agree on this

so in practical, all parties need to bear TDS on their own, because foregin party don't let you deduct TDS.

I m not confirm in Credit card payment, as i have never done this

I see. But yes, like you said, party is not agreeing to deduct TDS.

Secondly, does TDS need to be deducted? If I were to show the transaction as purchase of artwork (finished good), what tax would I need to bear on that?

In case the you are paying tds from your pocket, you need to gross up that amount for calculating tds amount to be deposited with govt.

@ rajat

then make agreement like this.

as you are purchasing something

With due respect I would like to say that Merely making some agreement will not change the fact. In my view making such documents and not making tds may creat problem in future.

Correctly speaking, I am paying an artist for him to send me a file with his artwork over email. This artwork already exists as part of his portfolio, so he is not creating any work from scratch. What he is doing is giving me the rights to use it.  Would you consider this as royalty or purchase of goods? 

Out of interest, what tax implications are there if it is purchase of goods?

you can plan out that payment and buying of designs in some other way to sidetrack tds provisions. but that should be planning and not evasion.