Is tax to be withheld on payments made by Indian company to a foreign company?

In this article we would analyse whether tax needs to be deducted on payments made to foreign companies. In this world of globalization, where cross-border transactions are the order of the day, there is often confusion and ambiguity with regards Tax-300x238to deduction or withholding of tax on payment made to foreign companies. Take, for example, a company situated in Bangalore, engaged in rendering IT and ITES services to their clients worldwide, which needs to pay marketing and business development fees to a company situated in Denmark. Now, the question is whether the Indian company should deduct or withhold taxes on payment made to the Denmark company. This article was written on by – Click here to read the full article.