we are exporters of agri commodities and paying commission & brokerage to foreigners for giving us the export orders. Pls inform is TDS applicable on such payment? If yes, how the foreigner will get the refund. ?
Pls provide us the notification/circulares no.etc.. in this regards..
Kishore in this case the law make it obligatory on the person making the payment to deduct TDS U/s 195 @ 10.30%. If you dont deduct TDS then the expense wont be allowable and you will be laible to penalty and prosecution.
The non resident could take the refund of this amount but this is not our head ache. Remember dont pay the TDS from your pocket, it must be a deduction from his income for further enquiry you can consult me at fcapiyush @ yahoo.co.in
Regards
Piyush
CAclubindia
