TDS on payment of commission in foreign currency

This query is : Resolved

shrikant (Querist)
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14 June 2009 Whether TDS is necessary on commission paid on export sale to Foreigh Citizen? If yes what is the % and under which section.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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14 June 2009 Step 1 : Find out to which country you are paying commission.

Step 2 : Check whether Double Taxation Avoidance Agreeement has been made with that country.

Step 3 : Deduct TDS as per that agreeement for commission.

Step 4 : If no DTAA agreeemnt is available then you have to deduct as per Section 195.