Commission payment to non resident foreign national taxable?

Hi,

I am paying commission to an agent in US for selling our services in US. Our services include Visual effects and animation for movies and commercials. We pay him $6500 as fixed fee plus 6% per project . Is he liable to pay tax in india or am I liable to cut TDS? your guidance is much appreciated.

Thanks

Srikanth

Replies (2)

TDS will be deducted sec 195

if pan not provided , deduction percentage would be the highest @ 20 %

If the person is an Indian, the person would have paid tax over and above TDS on his income (commission in this case). Now how the income tax department is going to get the remaining tax from the foreign national? Obviously it can not get. Does it mean just paying TDS by the payer is good enough for the income tax department or whether the payer should pay the complete tax that would be more than TDS? 

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