Tax liability for earning outside india..

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One of my friend is based in Chennai. He is sourcing Marbles from Turkey and the invoices are being raised in Turkey. The buyer is based in Qatar and materials are being used in Qatar. My Chennai friend is only a sourcing person for this buyer. He is getting a commission for doing this. The Chennai person has to travel to Qatar and Turkey for execution of this sale and he is having expenses on his Telephone calls to these countries from  Chennai. Is this commission payable in India by this Chennai friend. Kindly clarify.

Sridhar L.

Replies (4)

where ur frnd is getting paid?

They must be paying commission to you on such sales on the basis of a bill or invoice issued by you. Whats the address on that invoice?

since your friedn is an Indian he is liable pay income tax on the same... although he can get benefit of DTAA

Question is not clear.

 

 

Anuj

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