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

TDS on overseas exhibition payments may not apply to space rent, stall and handling charges; banks seek CA certificate.
Payments to foreign organisers/agents for participation in an overseas exhibition-notably space rent, stall construction/charges and related labour and handling expenses-are stated by the adviser to be not subject to TDS, though banks are demanding a CA certificate or similar assurance for non applicability before allowing remittance.