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TDS by non-residents

Skamul (19 Points)

10 May 2007

Dear Friends,

A shipping company incorporated in Singapore operates in India thru an agent (Steamer Agent). The shipping company pays Agency commission and brokerage for the service rendered by the Indian agent. Is the Foreign shipping company liable to deduct TDS for the commission and brokerage it pays to the Indian agent.

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5 Replies

Vinod Kashyap (XBRL Training) (451 Points)
Replied 10 May 2007

Since the Shipping Company doesn't have a PE in India it will not be required to deduct TDS on Commission or Brokerage paid to its Indian Agent.

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CA Anil Jain (Chartered Accountant) (696 Points)
Replied 03 December 2007

PE Means?

CA Anil Jain (Chartered Accountant) (696 Points)
Replied 03 December 2007

PE Means?

K R Ramesh (Service) (201 Points)
Replied 04 December 2007

PE here means Permanent Establishment. Please correct me Mr. Vinod if I am wrong

Vk Duggal (320 Points)
Replied 04 December 2007

There is a specific circular issued by CBDT in which it is stated that if a foreign company does not have a permanenet establishment in India, it is not liable to deduct and deposit tds in India.