Tds on commission paid to foreign agents

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This query is : Resolved

pawan (Querist)

08 May 2012 WHETHER TDS IS APPLICABLE ON COMMISSION PAYMENT TO FOREIGN AGENT MADE FOR ARRANGING SUPPLY OF IMPORTED MACHINERY.

WHETHER THERE ANY CIRCULAR/NOTIFICATION IN THIS REGARD. PLEASE PROVIDE THE SAME.

THANKS

Amol S Joglekar

Amol S Joglekar (Expert)

08 May 2012 No TDS on commission. CBDT circular No 23 dated 23rd January, 1969 reiterated in CBDT circular No 786 dated 7th February, 2000. [SOL Pharmaceutical Ltd v ITO (2003) 30 DTC 535 (Hyd ‘A’ Trib)(2002)83 ITD 72(Hyd- Trib)]

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swasti

swasti (Expert)

08 May 2012 But Sir, what is the provision now as the said circular had been withdrawn.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

09 May 2012 There are lot of cases on the subject wherein it has been held that the TDS liability shall not be there . However off late there has been a lot of cases which have held that TDS liability is there.

So in my view the assessee has to take a call regarding TDS deduction,keeping in mind the various judgements.

Anuj
femaquery@gmail.com

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