tds on commission paid to non resident

This query is : Resolved

mohit (Querist)
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22 February 2010 xyz has a agent for selling the goods in a taiwan with which we do not have a DTAA and for this service we pay him commission at specified %age.
So whether i should deduct tds on this or not.
If yes what would be rate of tds and if no than reason for that.

CA SIDHARTH HIRALAL PATNI

CA SIDHARTH HIRALAL PATNI (Expert)
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23 February 2010 As per ur case it is clear that agent is selling goods on ur behalf it does not matter in the eye of law he is selling goods on ur behalf in India or in Taiwan. While making the payment u have to deduct TDS as per income tax.

Anjani Pratap Tiwari

Anjani Pratap Tiwari (Expert)
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23 February 2010 Payment of commission to a non resident for export is exempt from TDS deduction . See cirular 786 dated feb 7, 2000.

M Prabhakar Menon

M Prabhakar Menon (Expert)
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23 February 2010 Mr Tiwari is right

Bimal Thacker

Bimal Thacker (Expert)
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23 February 2010 Circuler 786 dt. feb 7,2000 has been withdrawn in oct.2009.
however withdrawal of circuler will change the law? deduction of TDS depends upon Whether income of agent is taxable in india ?

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