Hi, I ma from India, i pay a lot to foreign companies like most of the Internet marketers, my payments include domains - godaddy, namecheap, etc hosting - hostgator advertising - starting WSO, adwords payment processor - wufoo aweber subscription Premium Membership fees for digital point etc Now My auditor says, that i need to deduct TDS at 20% for all these payments under section 195. I am sure none of the above mentioned companies will agree with that, so I have pay them full amount and pay 20% TDS from my hand and will result in a loss for me. Is this true, can anyone from India throw some light on this issue. Any legal or technical advice will be really appreciated.
It sounds to me like you do not understand what you are being told. Ask you auditor for help explaining what you are supposed to do. Your taxes should not require you to pay anyone 20% less - I think you are not understanding the rule and how it applies.