10 January 2013
A company is doing the business of mobile game development. This game is uploaded through an agent. The end customer downloads the game from the agents site. An agreement is executed between the company and the agent for the transactions. The downloads are happening mainly outside India. Net Income (after taking their commission) is transferred by the agent in INR to the company.
Advice whether the commission given to the agent will attract TDS under section 195. The agent is outside India and do not have PAN in India.
If so, can TDS be avoided if they transfer the net income in Foriegn Exchange.
CAclubindia
