Sales commission received from foreign client
This query is : Resolved
Vinodkumar.O.K
(Querist)
22 December 2011
Dear All,
Can anybody help us to tackle the below narrated issue.
The company get the proposal from one of the foreign client.
The foreign clinet will give all components.The Indian company needs to assemple and sell at the proce decided by the foreign client. The indian compy should send all sales proceeds except the agreed portion for commisson/service.
Pls help us to know tax liability of the above transactions
Can anybody help us to tackle the below narrated issue.
The company get the proposal from one of the foreign client.
The foreign clinet will give all components.The Indian company needs to assemple and sell at the proce decided by the foreign client. The indian compy should send all sales proceeds except the agreed portion for commisson/service.
Pls help us to know tax liability of the above transactions
CA Abhishek Rana
(Expert)
23 December 2011
Dear Vinod,
As per the facts narrated above, the Indian company becomes a dependent agent of the non resident and may be treated as PE of the non resident in India.
In such case u need to look into the relevant DTAA provisions read harmoniously with the provisions of Income Tax Act to determine the tax liability of the transaction.
CA Abhishek Rana
9899 249248
As per the facts narrated above, the Indian company becomes a dependent agent of the non resident and may be treated as PE of the non resident in India.
In such case u need to look into the relevant DTAA provisions read harmoniously with the provisions of Income Tax Act to determine the tax liability of the transaction.
CA Abhishek Rana
9899 249248
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