Tds on forign commission

This query is : Resolved

SAMIR DESAI (Querist)
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07 August 2012 Dear Sir,

me doing trading business of furniture,me buy furniture from china & he take commission on sale bill than when i paid commission to this china party than we liable to deducted tds on this amount or not

CA Sumiit B Nagpal

CA Sumiit B Nagpal (Expert)
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07 August 2012 Are you paying the commission in foreign currency and sending the commission in China?

SAMIR DESAI

SAMIR DESAI (Querist)
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07 August 2012 yeas sir i already paid the commission

SAMIR DESAI

SAMIR DESAI (Querist)
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07 August 2012 in dollar currancy

CA Sumiit B Nagpal

CA Sumiit B Nagpal (Expert)
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07 August 2012 Yes TDS would be applicable and as per Section 195 you have to obtain form 15CB from Chartered Accountant and furnish e-form 15CA through NSDL site. If the China party has PAN, then the TDS would be deducted @ 10% otherwise 20%

SAMIR DESAI

SAMIR DESAI (Querist)
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07 August 2012 if the commission amount is less than 5000 than tds applicable or not,only abouve 5000/- billing tds applicable

CA Sumiit B Nagpal

CA Sumiit B Nagpal (Expert)
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07 August 2012 You have to obtain form 15CB for any amount of foreign currency you will be sending abroad from Chartered Accountant.He will see to it then whether TDS will deducted or not.

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