Tds on commission paid to foreign agents

This query is : Resolved

pawan (Querist)
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08 May 2012 WHETHER TDS IS APPLICABLE ON COMMISSION PAYMENT TO FOREIGN AGENT MADE FOR ARRANGING SUPPLY OF IMPORTED MACHINERY.

WHETHER THERE ANY CIRCULAR/NOTIFICATION IN THIS REGARD. PLEASE PROVIDE THE SAME.

THANKS

Amol S Joglekar

Amol S Joglekar (Expert)
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08 May 2012 No TDS on commission. CBDT circular No 23 dated 23rd January, 1969 reiterated in CBDT circular No 786 dated 7th February, 2000. [SOL Pharmaceutical Ltd v ITO (2003) 30 DTC 535 (Hyd ‘A’ Trib)(2002)83 ITD 72(Hyd- Trib)]

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swasti

swasti (Expert)
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08 May 2012 But Sir, what is the provision now as the said circular had been withdrawn.

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CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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09 May 2012 There are lot of cases on the subject wherein it has been held that the TDS liability shall not be there . However off late there has been a lot of cases which have held that TDS liability is there.

So in my view the assessee has to take a call regarding TDS deduction,keeping in mind the various judgements.

Anuj
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