15 May 2016
Dear Sirs,
M/s XYZ Ltd, has to pay Rs 5 lakhs as sales commission to Mr. ABC (Non-Resident) who acting as its agent for booking orders from various customers who are outside India.
** Please advise, whether TDS is applicable in this case...
** In my view, the commission is not chargeable to tax in the hands of Mr. ABC in India hence TDS is not applicable in this case.
** Please advise the deductibility if my view is not correct...
Sirs, kindly help me and revert as I have to appear in CMA final examination in coming June attempt.
Regards, Amit Srivastva