An A Ltd (Indian Company) has an agreement with B & Associate (Partner Ship Firm) in relation to Commission on the sale made by B & Associate. In the Agreement B & Associate has the right to appoint sub agent in USA. Commission payable to B & Associate at 10% on FOB Value of the sales. B & Associate appoints Sub agent in USA (do not have PE in India & Service are render outside India) and agrees to pay commission @ 4% of FOB Value of the sales. A Ltd agree to pay commission to sub agent on belalf of B & Associate. So Commission payable to B & Associate would be 6% and sub agent would be 4%.
I would like to know that whether we are required to Deduct TDS on commission payable to B & Assoicate @ 10% or 6% of FOB value of Sales?
I would further like to know that whether we are required to deduct TDS on commission payable to sub-agent @ 4% of FOB Value of Sales?
Do we required to deduct tds as per DTAA between India and USA?
CAclubindia
