Whether TDS should be Deducted on brokerage/commision paymen
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
12 May 2010
Please can anybody will explain me, whether TDS should be deducted on commission or brokerage paid to NRI party which is a private limited company in singapur. party is our broker selling goods on the basis of commission.
which section and which rate TDS should be Deducted.
Whether surcharge and Education cess is applicable in this case or not.
which section and which rate TDS should be Deducted.
Whether surcharge and Education cess is applicable in this case or not.
Manish Soni
(Expert)
12 May 2010
Sec 194H if payment exceeds Rs. 2500 in a FY @10%.
No surcharge and cess w.e.f. 01.04.09
No surcharge and cess w.e.f. 01.04.09
12 May 2010
I THINK TDS APPLICABLE U/S 195.
Any person responsible for paying any interest or any other sum (not being salary) to a non-corporate non-resident or to a company other than a domestic company shall, deduct Income tax at source there from as per the rates specified in the Finance Act.
For deduction of tax at source under section 195 only consideration would be whether payment of sum to non-resident is chargeable to tax under provisions of Act; sum may or may not be income or income hidden or otherwise embedded therein; scheme of tax deduction at source applies not only to amount paid which wholly bears ‘income’ character but also to gross sums whole of which may not be income or profits of recipient - Headstart Business Solutions (P.) Ltd., In re [2006] 155 Taxman 639 (AAR - New Delhi).
Any person responsible for paying any interest or any other sum (not being salary) to a non-corporate non-resident or to a company other than a domestic company shall, deduct Income tax at source there from as per the rates specified in the Finance Act.
For deduction of tax at source under section 195 only consideration would be whether payment of sum to non-resident is chargeable to tax under provisions of Act; sum may or may not be income or income hidden or otherwise embedded therein; scheme of tax deduction at source applies not only to amount paid which wholly bears ‘income’ character but also to gross sums whole of which may not be income or profits of recipient - Headstart Business Solutions (P.) Ltd., In re [2006] 155 Taxman 639 (AAR - New Delhi).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Transfer of Physical Stock Between Two Proprietorship Concerns
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
