Tds on commission paid to non resident

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srikar (Querist)
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29 January 2014 An Indian company is engaged in Medical Transcription Services for its U.S. clients.
A Non Resident individual is helping the company in finding the clients. For this, the Indian company has to pay some specified amount towards commission.
My Question is :
Is TDS deductible on the amount paid to Non Resident?
If not, What is the basis?
If yes, How much?

Pls do reply at the earliest

Thank You

AVTAR SINGH

AVTAR SINGH (Expert)
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29 January 2014 TDS is not required to be deducted because commission income of NRI is not chargeable to tax in India.

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srikar

srikar (Querist)
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30 January 2014 Thank You Mr. Avtar Singh

Can you pls provide me some supporting for the same.....

srikar

srikar (Querist)
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30 January 2014 Thank You Mr. Avtar Singh

Can you pls provide me some supporting for the same.....

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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30 January 2014 No need to deduct income tax u/s 195 as per
CBDT Circular No. 786, dated 7-2-2000.

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srikar

srikar (Querist)
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30 January 2014 https://law.incometaxindia.gov.in/DIT/HtmlFileProcess.aspx?FooterPath=D:%5CWebSites%5CDITTaxmann%5CAct2010%5CDirectTaxLaws%5CITACT%5CHTMLFiles%5C2011&DFile=cirsec9.htm&tar=top

This circular states that the previous circulars have been withdrawn... Wat is the consequence of it ?

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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31 January 2014 Yes ,circular is withdrawn as a consequence to the retrospective amendment in section 9.
Now, my above answer remains the same by virtue of the corollary of explanation to section 9(2) read along with proviso to section 5(1) meaning thereby TDS doesn't attract u/s.195.

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srikar

srikar (Querist)
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31 January 2014 Thank You very for the reply...

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