IS TDS SUPPOSE TO BE DEDUCTED ON COMMISSION PAID ABROAD

This query is : Resolved

VICKY (Querist)
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07 September 2009 SIR

WE HAVE NOT DEDUCTED ANY TDS ON COMMISSION PAID TO A NON-RESIDENT OVERSEAS.

WE HAD REMITTED XYZ AMOUNT IN US DOLLARS ABROAD

IS IT SUPPOSE TO BE DEDUCTED , PLS EXPLAIN US WITH REF NOS , AS WE HAVE A QEURY TO BE FULFILLED

CP Ram

CP Ram (Expert)
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07 September 2009 Yes, TDS is applicable on commission paid to a Non-Resident u/s 195...

As per section 195 of the Income Tax Act, 1961, Any person making payment to any non-resident other than company or any foreign company by way of interest or any sum chargeable as income (other than salary) is liable to deduct tax at the rate specified..

For the above purpose of TDS u/s 195, rate of tax shall mean the rate of tax specified in-
i) the Finance Act; or
ii) an agreement u/s 90; or
iii) an agreement u/s 91A.

Note: You need to obtained a Certificate from a Chartered Accountants for making any foreign remittances...

VICKY

VICKY (Querist)
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07 September 2009 Thks , but eager to know ,

As a service extended abroad & income gained there , why & how will he pay tax & how will he hve a refund. (as nobody will agree to this.)

Is it better to get it deducted from proceeds abroad & treat as Discount

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