TDS rates for advance payment of maintaience charges to singapore based company?



i had purchased software from a singapore based company. now i have to make advance payment to them for maintaience charges.i am confused abount the nature of payment, whether the above payment is treated as profesional income or incoem from property for that comapny.what will be the tax rate for TDS

TDS rates for advance payment of maintaience charges to singapore based company?
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One Reply to “TDS rates for advance payment of maintaience charges to singapore based company?”

  1. Firstly, It would be good if you can define “TDS”. I’m afraid we do not have such a term here.

    It would also be good if you can tell us where you are located.

    Generally, Depending on the contents of your contract and the location where the service is being provided, there will be various considerations for you to think about.

    What is the nature of the maintenance contract? Duration? Provided in Singapore or otherwise?

    Software maintenance should be considered as a service income. For many countries, withholding tax on the amount that the Singapore company is charging you should be withheld unless a double taxation has been signed to waiver that off by the government agencies.

    The will be no tax charges ( no GST charge on export services).

    I hope this helps.





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