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This discussion clarifies tax obligations when paying commission to a Non-Resident Indian (NRI) for services rendered outside India. It confirms that if the NRI has no 'Business Establishment' in India and the income is deemed to accrue outside the country, no Indian Income Tax TDS should be deducted. Consequently, Forms 15CA and 15CB are generally not required for such commission payments remitted in foreign currency.

TARIQUE RIZVI

TARIQUE RIZVI (Querist)

08 August 2023 DECLARATION:
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We herewith confirmed and declared that we are not having any " Business Establishment " in India. Therefore under Indian Income Tax Act 1961 NO TDS to be deducted from our commission payment since income deemed to accrued and arise out of India.

The drawee is basically NRI in Australia and we have to remit payment in US$ on account of brokerage and commission.

In such a case whether 15-CA & 15-CB are required to be filed.

Please guide me and oblige.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 August 2023 What is the nature of supply by NRI? Whether any supply in India or out of India?

TARIQUE RIZVI

TARIQUE RIZVI (Querist)

08 August 2023 Nature of supply by NRI is brokerage & commission. The NRI books order for us in Australia and we pay the brokerage/commission to the NRI.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 August 2023 In that case No TDS liability over the commission.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

11 September 2024 Good Luck.

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