Foreign Company Invoicing Indian client

[Guest]

Hi,
We are a Canada based firm with 100% ownership of an NRI. Currently, we have no presence in India and are looking to provide Digital Marketing services to our client in India. We need to raise an invoice in INR to our client and we are not sure of the tax implications for the same. It will be very helpful if you could please guide us on the Indian taxation rules. What we understand currently is this:

1. Will TDS need to be deducted from the payment done by the client. How much will this be and will we need a PAN for the client to be able to deduct TDS in the first place?

2. Will we need to file returns in India despite having no presence in the country?

3. Will we have to charge Service tax to our client? If yes, will we have to file returns in that case?

It will be very helpful if you could also please provide details on how to best be able to bill our client. Looking forward to your replies. Thank you.

Regards,

Div

AI Summary

Canada-based firm seeks guidance on invoicing Indian client for digital marketing services, queries on TDS, PAN, and service tax. A Canada-based firm, fully owned by a non-resident Indian, seeks guidance on invoicing an Indian client for digital marketing services. The firm has no presence in India and is uncertain about tax implications. They inquire about the necessity of deducting Tax Deducted at Source (TDS) from payments, the requirement of a Permanent Account Number (PAN) for TDS deduction, filing tax returns in India, and charging service tax. They request detailed advice on billing their Indian client and understanding applicable Indian taxation rules.