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.

Manish Soni

Manish Soni (Expert)
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12 May 2010 Sec 194H if payment exceeds Rs. 2500 in a FY @10%.
No surcharge and cess w.e.f. 01.04.09

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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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).

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