Tds on commission

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CA.GAURAV SACHWANI (Querist)
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20 August 2011 An Indian Company paid Comm on foreign sales to the agent in india and it paid in Indian Rupees equivalent to Dollar Then TDS is deductible or not Because the Sales in question is totally out of India.

CA Chitta Ranjan Das

CA Chitta Ranjan Das (Expert)
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20 August 2011 The above case attracts TDS u/s 194H of Income Tax Act,1961.

Since the commission is payable to a Resident of India in rupees (equivallent to Dollar)as an Agent in India, then, TDS is deductible on such payment @10% (no cess or surcharge applicable) if the same is not deducted earlier when income is credited in books of accounts.

it may be noted that if the recipient does not submit the PAN No., then TDS to be deducted @20%.