TaxTMI 
TaxTMI 
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.?
Wothhold tax
28 Oct 2017 
5 Replies 
2440 Views Asked by
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. (AI Summary)
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. (AI Summary)