22 April 2010
I have a foreign agent who markets my products in his country.In case he gets me an order directly from foreign customer, is it mandatory that my foreign agent needs to apply for a PAN No. as I will have to pay him commission for the business he has generated for me.
Pls note agent is a foreigner not residing nor having any operations in India.
23 April 2010
as the agent is providing services out of India and do not have Permanent services in india then his services are not liable to tax india.
Therefore the provision of section 206AA are not applicable and the agent is not liable take any PAN in india.
CAclubindia
