Commission paid to a korean company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2014 I am an accountant in a Internation School. A korean company provide addmission of student in our school and charging commission on per student addmission. it paying fees after deducting thier commission amount.
How this transaction will accounted
and
what compliences and documentation require to claim this expense?

Ashok

Ashok (Expert)
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17 February 2014 can u explain the facts a bit more clearly pls.

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2014 Rs. 2 Lac fees is payable by a student, who come thru an agent. now we got Rs.1.91 Lac after deducting commission of Rs.9000/- by agent.
we are going to book Rs. 2 Lac as income and 9000 as expense. for claim this said expense in IT what formalities and documantetion is required?

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Ashok

Ashok (Expert)
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17 February 2014 is the agent related person? group co. etc?

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2014 No, its Pvt Limited company, which is not related to Shool trust in any manner.

Ashok

Ashok (Expert)
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17 February 2014 sir s194h - commmission @ 10% tds applies.

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2014 sir, since it is korean company(foriegn company, as per DTAA, sec 195 and Samsung case TDS is not applicable to the transaction.
for claiming such transaction as expense in Account what kind of documents required?

Ashok

Ashok (Expert)
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17 February 2014 sir that's the facts that I asked you. Pls make our discussion easy by putting the critical facts first.

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Ashok

Ashok (Expert)
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17 February 2014 sir that's the facts that I asked you. Pls make our discussion easy by putting the critical facts first. It doesn't matter if the korean co. is a pvt ltd company or not. Does the Korean co. have a place of business in India? Is the company conducting operations in India? As in is the agent working out of India?