DEDUCTION OF TDS ON PAYMENT OF COMMISSION TO N.R. COMPANY

This query is : Resolved

CA. AMIT (Querist)
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16 June 2011 WHAT IS THE PROCEDURE FOR REGARDING PAYMENT OF BUYING COMMISSION TO NON RESIDENT COMPANY. WHETHER THE TDS IS REQUIRED TO BE DEDUCTED . IF YES AT WHAT RATE. FURTHER WHAT IS THE PROCEDURE FOR FILLING TDS RETURN. WHETHER PAN NO IS NECESSARY.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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16 June 2011 TDS has to be deducted on the above payment to NRI Company.

First find out what is the rate as per DTAA agreement and compare with Section 195 whichever is benefitial to the assesee that can be adopted.

Secondly find out whether the NRI is having pan no. if he do not have pan then 20% or above whichever is higher has to be adopted.

TDS returns has to be filed as per the normal existing procedure.

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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20 June 2011 THE QUESTION OF TAX DEDUCTION ARISES ONLY IF THE PAYMENT MADE TO NON RESIDENT IS TAXABLE IN INDIA
IF THE NR HAS NO BUSINESS CONNECTUION IN INDIA OR NO PE IN INDIA THEN NO TAX DEDUCTION IS REQD
CA MANOJ GUPTA
JODHPUR
09828510543

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