TDS on Commission paid to Foreign Party
This query is : Resolved
18 March 2010
An EOU unit "R" located in chennai pays commission to a foreign company say 'x' on account of order procurement outside India.
i.e. "X" has secured an order for "R" outside India and "R" has paid commission for an amount of Rs. 2000000/- to "X".
Is "X' supposed to deduct TDS on this payment? If so at what rate?
i.e. "X" has secured an order for "R" outside India and "R" has paid commission for an amount of Rs. 2000000/- to "X".
Is "X' supposed to deduct TDS on this payment? If so at what rate?
18 March 2010
Yes And Rate is 10%
18 March 2010
YES. TDS TO BE DEDUCTED U/S195. BUT I AM NOT SURE IF RATE IS 10%. 10% IS RATE OF TDS IF COMMISSION IS PAID TO A RESIDENT.
PLEASE REFER SEC 195 IN DETAIL.
PLEASE REFER SEC 195 IN DETAIL.
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