An Export Agent in Australia brings an Export Order from Philippines for Indian company. Against this order, Indian company has to pay some commission to the Export Agent.
Now i want to know whether Indian Company need to deduct the TDS on the commission payment to be paid to Export Agent or not?
If yes, how much percentage of TDS will be dedcuted.
Export Agent has no relations with India and is native of Australia.
If service is renderd in abroad then no need to deduct TDS
any technical consultancy, commission, royalty etc. payment made outside india than TDS rate applicabl is either 20% or 25%
Hello
No tds need to be deducted , since the service recd outside india and the agent does not have any business connection or business establishment in India , commission income earned does not accrue or arise in india , hence his income is not taxable in India so NO TDS
I'm getting different answers and evey individual has his/her own answers to my above inquiry.
I just want to know the reason of getting different answers.
Are there any laws that are contradicting each other and we are finding it difficult to make any conclusion.
Still waiting for a correct answer.
Refer the link.
/forum/tds-on-non-resident-foreign-comission-agent-251683.asp#.U1dJQVWSxrU
Chirag N Shah & Associates
Mumbai
CA Inter
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SKAA & Associates
New Delhi
CA Inter
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