Wothhold tax

[ketan mehta]

Dear Experts

while purchasing bulk sms services from dubai to resell in gulf countries , does required to deduct tax to remimt the payment to vendor in dubai?. Can any body advice.?

[KASTURI SETHI]

Are you talking about Income Tax or GST ?

[ketan mehta]

IT IS ABOUT tds ( INCOME TAX ) )WITHHOLD TAX)

[DR.MARIAPPAN GOVINDARAJAN]

You have to refer the provisions of income tax law of that country.

[Ganeshan Kalyani]

Also check the provison related to DTAA .

[ketan mehta]

There are no tax in dubai. & DTAA is salient for such services - short messages services ( SMS)

AI Summary

Withholding tax applicability on cross border SMS service payments depends on domestic withholding rules and DTAA terms.
Whether payment to a Dubai supplier for bulk SMS services resold in Gulf markets triggers withholding tax (TDS) depends on the applicable income tax rules and the tax relationship between the payer's jurisdiction and the supplier. The purchaser must determine if domestic income tax withholding rules or indirect taxes apply and should examine relevant Double Taxation Avoidance Agreement (DTAA) provisions governing withholding obligations on cross border service payments.