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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 November 2009 A company is acting as an agent for oversseas universities/colleges and arranging educational seats in overseas universities to students here. For each student sent overseas, some amount is paid by the university. Should that income be treated as commission or professional inome.

Sunil

Sunil (Expert)

09 November 2009 The receipt of commission is akin to brokerage and therefore it is a business income. However, if you are a dependent agent of the university and deemed to be a DAPE of the non-resident university, then the commission you receive should be at ALP and you are also responsible as agent for the payment of taxes of the non resident that is deemed to accrue or arise in India. Moreover, if you are providing any services of technical, managerial or consultancy including making available technical, managerial or other personnel and being remunerated by lump sum or fixed/variable percentage , then the receipt is a professional receipt. All this depends on the agreement you have signed with the university and your scope of work.

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