https://incometaxindia.gov.in/circulars/2000/Cir786.asp
With reference to the above site, circular no:786 payment to Non-resident is NOT liable to TDS u/s. 195. I argued my colleague.
As an Internal Audit Assistant, i'd like to remove my doubt before making observations.
we are a software pvt ltd. in india & we are paying monthly server rental charges and web hosting charges to the US company. They Server space providers like VSNL in India. In that server we are storing data and contents and delivery the web pages from that server. Service provider in US they don't have establishment in india.
Let me know I have to deduct TDS or not? IF yes, it is U/s 195?
FYI: we are paying server charges in USD $ currency from india to US through EEFC a/c.
But my colleague argued me that TDS is APPLICABLE to it.
Experts' opinion pl.
CAclubindia
