TDS on Commission paid to Foreign Party

This query is : Resolved

N.Avinash Karthic (Querist)
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18 March 2010 An EOU unit "R" located in chennai pays commission to a foreign company say 'x' on account of order procurement outside India.

i.e. "X" has secured an order for "R" outside India and "R" has paid commission for an amount of Rs. 2000000/- to "X".

Is "X' supposed to deduct TDS on this payment? If so at what rate?

CA CHINTAN AJMERA

CA CHINTAN AJMERA (Expert)
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18 March 2010 Yes And Rate is 10%

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 March 2010 YES. TDS TO BE DEDUCTED U/S195. BUT I AM NOT SURE IF RATE IS 10%. 10% IS RATE OF TDS IF COMMISSION IS PAID TO A RESIDENT.
PLEASE REFER SEC 195 IN DETAIL.

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