Tds on commision to non-resident

This query is : Resolved

CA Karan Joshi (Querist)
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26 December 2012 Dear Sir,

A pvt ltd co. wants to pay commission to a non resident for getting export orders for them. He has no offices or any establishment whatsoever in India. The receiver is Citizen of United Kingdom.

The payment is to be made in Foreign Currency.

Kindly advise me that whether TDS u/s 195 is applicable ???
And if yes, at what rate ??

Kindly let me know, on priority basis.

Thanks and Regards
Karan.

CA Jatin Kacha

CA Jatin Kacha (Expert)
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27 December 2012 It can be seen in your case that commission income is accrued and arised in india.

However, some experts have opinion that in case like you, there are no TDS liability.

Therefore, I advise you to deduct the TDS u/s 195 @ 30% of the amount as the income has been accrued and arose in india.