Dear Sir,
Our Company wish to make foreign payment on account of down-loading of on-line user license from AIAG - USA for Material management operational Guide.
Do we nee to pay withhold tax on this transaction and also need to pay on import of this license ?.
Regards
Pradeep Jain
Withholding tax on cross-border licensing payments may arise when companies pay foreign online software license providers for downloads. Whether withholding tax applies to payments made to a foreign supplier for downloading an online user license for a materials management guide and whether tax is payable on importation of that license; the forum thread contains no substantive clarification or determination of the characterization of the payment or applicable withholding rules. (AI Summary)