TDS on Commission Paid to Foreign Person

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2010 IF any company paid 2,50,000 for commission to a foreign person/company for service provided in Foreign country and he has no Establishment in India.

Whether their is requirement of TDS U/s 195 or any other section and if Yes how much?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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03 November 2010 In your case there is no business link in india.

Service has also been provided in outside india. So income doesnot accrued in indai. In this case TDs u/s 195 will not be applicable.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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03 November 2010 In my view since income does not accrue of arise in India of the recepient then the same is not liable for tax in India and hence should not be liable for deduction of TDS.

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