withholding tax

[Praveen Mittal]

Our company who is resident in India has to remit US $10,000 to a Company who is resident of Vietnam for attending seminar over there [Seminar with topic related to advertisement].  Plz suggest if our company is required to withhold tax in India and if yes than at what rate.  Plz also give relevant provision of Income tax Act and DTTA

 

AI Summary

No TDS on $10,000 remittance to Vietnam if TRC and No PE certificate provided; check for FTS classification. A company in India is planning to remit $10,000 to a Vietnamese company for attending a seminar related to advertising. The query is whether withholding tax is applicable under Indian law. Anuj Gupta advises that no tax deduction at source (TDS) is needed if the foreign company provides a Tax Residency Certificate (TRC) and a No Permanent Establishment (PE) certificate. If the seminar is considered technical training, it might be classified under Fees for Technical Services (FTS), but general seminars are not. For countries without a Double Taxation Avoidance Agreement (DTAA), standard income tax rates apply. Jayaraman M suggests that the income is taxable in Vietnam under source-based taxation, not in India.