11 May 2010
The explanation occurring after subsection 2 of section 9 is substituted by the Finance Bill,2010 ( now become Act No.14 of 2010 by virtue of president's assent dated May 8,2010)with retrospective effect from June 1,1976 so as to provide that the income of a non resident shall be deemed to accrue or arise in India and shall be included in the total income of the non resident, whether or not:- i) the non resident has a residence or place of business or business connection in India or, ii) the non resident has rendered services in India. In view of the above, as per my understanding, income tax has to be deducted on the payment of commission.