ITDS from charges paid for participation in Exhibitions out of India

[Rasesh Amin]

Pl let us know whether ITDS deduction is mandatory of charges paid to Foreign companies (with no interest / offices in India) towards services availed by Indian company for participation in Exhibitions held outside India. Banks are insisting for ITDS or asking us to submit necessary certificates from CA regarding exemtion of ITDS. Even CA's are reluctant to issue the same as law is not clear. These service providers (Foreign Companies) have refused to except payments after deduction of taxes because of which we are facing problems in seeking their services for our effective particiaptions. Will appreciate if we get suitable guidance in the above matter at the earliest.

AI Summary

Indian Firm Seeks Clarity on ITDS Requirement for Payments to Foreign Companies for Overseas Exhibition Services An Indian company is seeking clarification on whether Income Tax Deducted at Source (ITDS) is mandatory for payments made to foreign companies for services related to participation in exhibitions held outside India. The banks are demanding ITDS or a certificate from a Chartered Accountant (CA) to exempt it, but CAs are hesitant due to unclear laws. The foreign service providers are refusing payments if taxes are deducted, causing issues in participation. A respondent suggests that no TDS is required for expenses like rent and stall charges for exhibitions abroad, but the company needs a CA certificate to satisfy the bank's requirements.