Deduction of tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 December 2012 i have a query regarding deduction of TDS .
if a resident company has to pay a commission to a non resident company then is the TDS to be Deducted and if yes what are provision ... can i be avoided ????

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

03 December 2012 TDS is required to be deducted u/s 195.

If you do not deduct TDS, the expenditure will be disallowed u/s 40(a)(i)

Message likes : 1 times

@VaibhavJ

@VaibhavJ (Expert)
Follow

03 December 2012 Agreed.. Must deduct TDS b4 making payment..

Upgrade to CAclubindia Pro. Subscribe Now!

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
Follow

03 December 2012 Dear One,
TDS Need to be Deducted in This Case Read With Section 195 and Read DTAA Betwen India and Respective Foreign Country.
The Most Beneficial One Will be Applicable.

if NRI Quoting PAN of India, Then Directly Deduct TDS @10% Straight Away.