Tds on commission paid to non resident
This query is : Resolved
29 January 2014
An Indian company is engaged in Medical Transcription Services for its U.S. clients.
A Non Resident individual is helping the company in finding the clients. For this, the Indian company has to pay some specified amount towards commission.
My Question is :
Is TDS deductible on the amount paid to Non Resident?
If not, What is the basis?
If yes, How much?
Pls do reply at the earliest
Thank You
A Non Resident individual is helping the company in finding the clients. For this, the Indian company has to pay some specified amount towards commission.
My Question is :
Is TDS deductible on the amount paid to Non Resident?
If not, What is the basis?
If yes, How much?
Pls do reply at the earliest
Thank You
AVTAR SINGH
(Expert)
29 January 2014
TDS is not required to be deducted because commission income of NRI is not chargeable to tax in India.
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30 January 2014
Thank You Mr. Avtar Singh
Can you pls provide me some supporting for the same.....
Can you pls provide me some supporting for the same.....
30 January 2014
Thank You Mr. Avtar Singh
Can you pls provide me some supporting for the same.....
Can you pls provide me some supporting for the same.....
30 January 2014
No need to deduct income tax u/s 195 as per
CBDT Circular No. 786, dated 7-2-2000.
CBDT Circular No. 786, dated 7-2-2000.
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30 January 2014
https://law.incometaxindia.gov.in/DIT/HtmlFileProcess.aspx?FooterPath=D:%5CWebSites%5CDITTaxmann%5CAct2010%5CDirectTaxLaws%5CITACT%5CHTMLFiles%5C2011&DFile=cirsec9.htm&tar=top
This circular states that the previous circulars have been withdrawn... Wat is the consequence of it ?
This circular states that the previous circulars have been withdrawn... Wat is the consequence of it ?
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31 January 2014
Yes ,circular is withdrawn as a consequence to the retrospective amendment in section 9.
Now, my above answer remains the same by virtue of the corollary of explanation to section 9(2) read along with proviso to section 5(1) meaning thereby TDS doesn't attract u/s.195.
Now, my above answer remains the same by virtue of the corollary of explanation to section 9(2) read along with proviso to section 5(1) meaning thereby TDS doesn't attract u/s.195.
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