Our export shipping bill dated May 2020 includes commission of USD 57000 payable to Indonesia based non - resident Agent, not being a company or a foreign company.
CA mentions remittance without TDS based on Form A2.
Is it correct? Also we are making payment in installments after 3 years? Any violation under FEMA?
Kindly advise.
Regards
Jayanta Bandyopadhyay
TDS: Generally, no TDS is required under Section 195 if the agent is based outside India, has no PE in India, and performs services entirely offshore, as the income is not taxable in India.
FEMA: While remitting current account business expenses is permitted, a 3-year delay is significant. Check with your bank to ensure the delayed payment does not violate any specific internal guidelines or reporting requirements for export-related remittances.
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