Dear Members,
Request advice on the following
- An Indian Company is planning to launch a marketing campaign in Dubai
- Towards this, the company will appoint a creative agency in Dubai
- This agency does not have any permanent establishment in India
- The advertisement campaign is restricted in Dubai and will not be in India.
- The Company will pay fees to the agency for undertaking the campaign
- Under local laws, the agency is not taxable in Dubai
In the above circumstances, considering provisions of IT act and DTAA, should the company deduct TDS u/s 195 from the fees payable to the agency
CAclubindia
