TDS [Resolved] | Income Tax #465595

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Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2010 Commission paid to Non Resident in USD in Korea.
Rs. 1,17,765/- .
Is it liable to TDS .

CA Sanat Pyne

CA Sanat Pyne (Expert)

20 August 2010 If it is commission on export of goods and agent has no PE in India and moreover you remit money to him abroad and do not pay him anything in India then section 9 states as follows:-

For the purposes of this clause

(a) in the case of a business of which all the operations are not carried out in India, the income of the business deemed under this clause to accrue or arise in India shall be only such part of the income as is reasonably attributable to the operations carried out in India ;

(b) in the case of a non-resident, no income shall be deemed to accrue or arise in India to him through or from operations which are confined to the purchase of goods in India for the purpose of export ;

Thereofre it should be very clear that the non resident has no branch or agent or employees in India. Then u/s 9 itself there is no TDS. You can also refer to the DTAA with the other contracting state (country).

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CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)

20 August 2010 The assessee is a non-resident of Korea.
It seems that since it did not have a
permanent establishment (PE) in
India, so under the provisions of
the DTAA between India and Korea,
their revenue was not assessable
in accordance with DTAA.

Accordingly --------No TDS

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