Oversea Commission

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A RAJU (Querist)

30 September 2008 Dear All

We are paying commission for overseas parties for Sales of our product

IF it will affect withholding tax what is the percentage

A RAJU

A RAJU (Querist)

30 September 2008 We are paying commission for overseas parties for Sales of our product

IF it will affect withholding tax what is the percentage

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)

30 September 2008 Withholding tax is applicable.Please refer to section 195 of IT ACt.

CA Gaurav Khanna

CA Gaurav Khanna (Expert)

30 September 2008 the rate of tax will depend upon the amount and the person to whom you are paying

Ravikumar.G

Ravikumar.G (Expert)

30 September 2008 Further, Refer C.No 786/07.02.2000
Commission paid to a non-resident agent for rendering services outside India, such income does not accrue or arise in India u/s 5 and such payments are not taxable in India and no tax is to be deducted u/s195.

Ravikumar.G

Ravikumar.G (Expert)

30 September 2008 TDS Rate u/s 195 :(sec 2(37A))
a) Finance act of the relevant year or
b) DTAA entered by central Govt u/s 90 or
c) Agreement notified by the CG u/s 90A

whichever is most beneficial to the assessee shall apply.

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