Tds applicable or not

CA Keyur Sheth (As an Audit Exceutive) (53 Points)

14 November 2011  

Dear Sir / Madam,

I have a doubt regarding TDS is applicable on commission or not on following transaction.

Our Client has export the goods in China for exhibition purpose. In Exhibition, our client has sold some goods on behalf of the company in china. The company in china wants commission on that sales.

We have given commission to the china company. Should we have deducted TDS on the amount of commission which had been paid by us? And also give me the appropriate case law regarding the above mentioned transaction.

Please give me answer that TDS is applicable or not and applicable then in which section and how it is applicable?

Thanks in advance.