Tds u/s 195

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 August 2012 I am working in a India company which export fabrics to USA. We are paying commission to the foreign agent for procuring oders and followup of payment. We deducted the tds @ 15% of the gross amount payable to forein agent and remitted the same to account of central government. What is the procedure for claiming the tds amount by foreign agent.Tds was deducted as per the provision of DTAA.(USA)

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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27 August 2012 Your company plays an intermediary role on behalf of Income Tax authority by fulfilling the provisions of TDS U/s 195.

The deduction of tax at source under section 195 would arise if the payment of commission to the non-resident agent is chargeable to tax in India.

Foreign Agent has to file the return with IT dept within the due date if his income is chargable in India to get the refund otherwise not.