Tds on nr

Dear All,

One of my client is exporter and now has to remit the sum to the NR.

The remittance is for the Commission on Sale. The NR work is to provide only the leads and thereafter the approach and sale closure is done by the Indian Company only. So, the commision is calculated on the fixed percentage of Sale Closed from the leads.

Now, the question arises is whether  the remittance of such amount shall be deemed as income accured in India? Given the fact that such NR has no agent/ offices in India.

Thanking you,

 

Replies (2)

Earlier there was a circular No 786 (year 2000) wherein payment of export commission was not liable to tax

however, subsequently prone to decision in Jindal case, the circular is withdrawn.

And hence payment of export commisison is subject to deduction of TDS

 

Thank you Sir for the prompt reply. I still doubt whether such income comes under purview of Sec 9. As there is no establishment of such NR in India. Moreover, the service is received outside India from a non resident, only remittance for the service performed is made from India. Sir, i shall highly appreciate if you further can throw some light on this.

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