TDS on Commission to NRI

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2010 please help me its urgent

Suppose there is a PVT LTD company in tours and travel business and they have agent at usa and that agent rase bills to Indian company for his commission

Company pays service tax to goverment on his behalf on that bill and commission amount to agent

Company deduct TDS on gross amount i.e. without including service tax

My query is that whether that procedure is correct or not and if correct kindly provide me notification on the above issue

Regards

Vir

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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20 February 2010 N0, The company shouyld deduct tds after inclusion of service tax

Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2010 thanks sir but how can two statutory obligation can be interact with each other

And nri is not taxable in india so can we not deduct tds on it

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