Dear all,
We have to make payment to foreign company for monthly hosting charges as per the usage as well we have to pay them for small website based on their product.
We have been asked by our CA that we need to pay TDS for payments to non resident companies under Section 195 of the Income-tax Act. Even though they do not have existence in India.
Other company is not moving further until they receive full payment.
I would appreciate if you all expertise can guide us on this as this asap.
Thanks in advance...
Milesh
From India, Pune
We have to make payment to foreign company for monthly hosting charges as per the usage as well we have to pay them for small website based on their product.
We have been asked by our CA that we need to pay TDS for payments to non resident companies under Section 195 of the Income-tax Act. Even though they do not have existence in India.
Other company is not moving further until they receive full payment.
I would appreciate if you all expertise can guide us on this as this asap.
Thanks in advance...
Milesh
From India, Pune
Yes you would need to deduct tax at source in this case before making any payment to a foreign party as the bank would not process the remittance unless accompanied by a CA certificate and a proof of deposit of TDS.
Further, please also check with your CA about the aplicability of service tax on this transaction as he would be knowing the facts of the case.
Thanks & Regards,
Avika Kapoor
Manager - Business Development
avika dot kapoor at kapgrow dot com
From India, New Delhi
117Further, please also check with your CA about the aplicability of service tax on this transaction as he would be knowing the facts of the case.
Thanks & Regards,
Avika Kapoor
Manager - Business Development
avika dot kapoor at kapgrow dot com
From India, New Delhi
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