Urgent

 Yes .........................

Since the agent is a non resident, no part of his income will be taxable in India.Your agent working in USA and his income will be taxed there itself.Hence there is no need to deduct TDS on payment to a non resident  for marketing on behalf of an indian Comapny

U need to look at the provisions whether he is a non-resident or not.

If he is, then it is not taxable in India.

It shall be taxable in the recipient country.

u have mentioned that he will not come in India .....  so he is a non resident then hhis income is not taxable in India then there is no need to deduct tax at source.......

"IF THE RECIPIENT IS NON-RESIDENT(OTHER THAN FOREIGN COMPANY), SURCHARGE IS NOT APPLICABLE BUT EC AND SHEC ARE APPLICABLE"------- This is a statement in Singania Reckoner AY 2011-12 page-A-326, Notes. Wat does the above staement mean?

As per the answers given, when TDS it self is not deducted, wher is da scope for EC and SHEC?

Implied the statement mean that TDS is deductable up to my understanding.

Please Clarify.

Yes TDS must be deducted U/s 195 for payment to non Resident at rate specified in (i) Finance act, or (ii) DTAA u/s 90, or (iii) Agreement notified by Central Govt. u/s 90A, Whichever is beneficial to Assessee.

Hence, commission paid to non-resident attracts TDS u/s 195 @ 30.9% including EC & SHEC. but no SC.

as per sec 195, TDS is deductible on payment to a non-resident on income chargeble under this act. But the above payment is not chargeable to income tax.... as the person is a non resident and he rendering services outside India and getting payment outside  india....... since it is not taxable at all then there is no need to deduct tax at source....................

As rightly said by Saini above, the amount is not taxable in india, coz, service is rendered outside India. Hence, it is not taxable in India and TDS u/s.195 is not attracted.Pls refer CBDT Circular N0.786 dt. 7th february 2000. Also refer CIT VS. COOPER ENGG LTD (1967) case