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Commission received from abroad

RAJ KUMAR (FINANCE MANAGER) (1393 Points)

14 January 2014

HELLO FRIENDS, MY CLIENT RECEIVED COMMISION INCOME FROM ABROAD AND FOREIGN COMPANY IS DEDUCTING TDS, MY CLIENT INSIST AND THEY TOLD THAT IF U DONT WANT TDS THEN SHOW INCOME TAX CERTIFICATE? WHAT IS IT MEAN IS THERE ANY CERTIFCATE OR ANY OTHER PROVISION. PLS. TELL ME. THANKS.

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CA Saroj Kumar (Keen to learn something new every moments) (2588 Points)
Replied 14 January 2014

In case of foreign company income, if u hav eto avoind TDS then u have to show Income Tax Certificate which is provided by the Income Tax Department for Non deduction of TDS, It certificate shows that the income which you will earn on that amount you will deposit the tax hence foreign company are advised that they should not deduct the tax. for this purpose you have to write a letter to income tax department to get this certificate.