Tds refund
This query is : Resolved
09 December 2015
Respected Sir/Madam,
We have deducted and paid TDS on foreign commission to non-resident overseas agent in the financial year 12-13.U/s 195.
from your forum of CA club we came across case study between Income tax Appellate(Delhi bench E) ITA no 626/Del./2012(assessment year 2008-09)ACIT Vs nidhi exports in which order was passed that NO TDS Should be made for payment of commission to overseas agent for services rendered by him outside India, but as we have already paid TDS kindly inform procedure to get refund of the same from Income tax department.Thanks
We have deducted and paid TDS on foreign commission to non-resident overseas agent in the financial year 12-13.U/s 195.
from your forum of CA club we came across case study between Income tax Appellate(Delhi bench E) ITA no 626/Del./2012(assessment year 2008-09)ACIT Vs nidhi exports in which order was passed that NO TDS Should be made for payment of commission to overseas agent for services rendered by him outside India, but as we have already paid TDS kindly inform procedure to get refund of the same from Income tax department.Thanks
09 December 2015
The N.R. person to file the return to claim the refund.
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09 December 2015
Respected Sir ,
thanks for your reply regarding TDS refund.
sir , the N.R. does not have a Indian pan no,bank account in any Indian bank.The commission was paid in dollars thru proper banking procedures.Kindly guide us if he still can file for returns. Thanks
thanks for your reply regarding TDS refund.
sir , the N.R. does not have a Indian pan no,bank account in any Indian bank.The commission was paid in dollars thru proper banking procedures.Kindly guide us if he still can file for returns. Thanks
09 December 2015
You said you have deducted TDS and paid it also.
You can file the return in India as a representative and call for the refund. Since it is for financial year 2012-13, you need to take the permission of the CIT having jurisdiction over your case.
You can file the return in India as a representative and call for the refund. Since it is for financial year 2012-13, you need to take the permission of the CIT having jurisdiction over your case.
09 December 2015
Respected Sir ,
The TDS amount we have paid to department is around Rs 58000 .
Sir , we would be glad if you take up this case on our behalf and ensure refund of the amount from IT dept.
Also inform your legal fees for the same.
Thanks.
The TDS amount we have paid to department is around Rs 58000 .
Sir , we would be glad if you take up this case on our behalf and ensure refund of the amount from IT dept.
Also inform your legal fees for the same.
Thanks.
28 July 2025
I understand the situation — you've deducted and deposited TDS on commission payments to a non-resident overseas agent, but based on the case law, such TDS may not have been required. Now you want to get a refund of that excess TDS paid.
---
### How to proceed to claim the TDS refund in such a case:
1. **Filing Return by Non-Resident (N.R.)**
Normally, the non-resident agent should file an Income Tax Return (ITR) in India to claim refund of TDS.
But as you mentioned, the agent doesn’t have PAN or bank account in India.
2. **Filing Return on behalf of Non-Resident (Representative Assessment)**
Since the non-resident has no PAN or bank account, your company (the deductor) can file an application for **“representative assessment”** under Section 163 of the Income Tax Act.
* This requires prior permission from the **Commissioner of Income Tax (CIT)** having jurisdiction over your case.
* After permission is granted, you can file the return on behalf of the non-resident and claim refund of TDS.
3. **Procedure to approach CIT**
* Prepare an application explaining the case, referencing the judgment (ACIT vs. Nidhi Exports) and the fact that excess TDS was deducted.
* Attach all relevant documents — TDS payment challans, payment details, legal case details.
* Submit this to CIT and seek permission to file representative return.
4. **After CIT Permission**
* File the ITR for the non-resident for the relevant Assessment Year.
* Claim refund of TDS paid.
* Once processed, the refund will be credited to the designated bank account or as per the direction from Income Tax Department.
---
### Important:
* The process involves legal and procedural formalities, so it's advisable to engage a tax consultant or legal expert familiar with non-resident taxation and refund claims.
* Regarding your request to take up the case and legal fees: I’m here to provide information and guidance, but I’m not authorized to provide legal representation or services.
---
If you want, I can help you draft the application for CIT permission or guide you on documentation required. Would you like assistance with that?
---
### How to proceed to claim the TDS refund in such a case:
1. **Filing Return by Non-Resident (N.R.)**
Normally, the non-resident agent should file an Income Tax Return (ITR) in India to claim refund of TDS.
But as you mentioned, the agent doesn’t have PAN or bank account in India.
2. **Filing Return on behalf of Non-Resident (Representative Assessment)**
Since the non-resident has no PAN or bank account, your company (the deductor) can file an application for **“representative assessment”** under Section 163 of the Income Tax Act.
* This requires prior permission from the **Commissioner of Income Tax (CIT)** having jurisdiction over your case.
* After permission is granted, you can file the return on behalf of the non-resident and claim refund of TDS.
3. **Procedure to approach CIT**
* Prepare an application explaining the case, referencing the judgment (ACIT vs. Nidhi Exports) and the fact that excess TDS was deducted.
* Attach all relevant documents — TDS payment challans, payment details, legal case details.
* Submit this to CIT and seek permission to file representative return.
4. **After CIT Permission**
* File the ITR for the non-resident for the relevant Assessment Year.
* Claim refund of TDS paid.
* Once processed, the refund will be credited to the designated bank account or as per the direction from Income Tax Department.
---
### Important:
* The process involves legal and procedural formalities, so it's advisable to engage a tax consultant or legal expert familiar with non-resident taxation and refund claims.
* Regarding your request to take up the case and legal fees: I’m here to provide information and guidance, but I’m not authorized to provide legal representation or services.
---
If you want, I can help you draft the application for CIT permission or guide you on documentation required. Would you like assistance with that?
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