TDS on commission paid to foreign co. or individual

This query is : Resolved

CA Amit Pandya (Querist)
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16 October 2009 One Company has paid commission to foreign co. situated in Hong Kong.

Nature of Commission is Sales commission.

Now whether TDS is deductible or not?

If deductible than at what % under which secton??

and If not deductible than exempt under whcich section??

Anjani Pratap Tiwari

Anjani Pratap Tiwari (Expert)
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16 October 2009 if the commisssion paid is upto 10% then no tds should be deducted.

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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16 October 2009 Hi Amit,

"The Authority for Advanced Ruling has ruled that if an Indian company pays a commission to an overseas company to promote its business in that country, such payment will not be taxable in India."

To read the article see the link below

http://www.taxguru.in/income-tax/taxability-of-commission-paid-by-indian-company-to-foreign-company-to-promote-its-business-in-that-country.html

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