TDS on Commision paid to foreign agent
This query is : Resolved
Deepak Biyani
(Querist)
23 July 2010
Commision paid to Foriegn Agent in foriegn currency U/s 195(2)
Assessee book e.g.
For example: Invoice value $1000 commision is to be paid 5% = $5 into conversion rate 45 i.e Rs. 225 debited to commision a/c in the books of assessee.
As conversion is not fixed and amount is paid in dollar by the bank only assessee book is debiting dollar from the conversion into Indian Rupees and the effect in the books comes in Indian Ruees
WHETHER TDS IS APPLICABLE OR NOT?
Assessee book e.g.
For example: Invoice value $1000 commision is to be paid 5% = $5 into conversion rate 45 i.e Rs. 225 debited to commision a/c in the books of assessee.
As conversion is not fixed and amount is paid in dollar by the bank only assessee book is debiting dollar from the conversion into Indian Rupees and the effect in the books comes in Indian Ruees
WHETHER TDS IS APPLICABLE OR NOT?
Shudhanshu Agrawal
(Expert)
26 July 2010
TDS shall be applicable under Section 195. Whther amount is paid in INR or $ or in any currency it does not metter. If amount paid to the party is taxable in India then TDS shall be applicable.
CA. Anuj Gupta
(Expert)
06 May 2011
The incomer of foreign agent is not subject to tax in India if he doesn't have fixed place of business or PE in India.
Anuj
0-9810106211
Anuj
0-9810106211
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