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Tds deduction?

TDS 124 views 1 replies

K.H. a Partnership firm, carries on export business. A party in Thailand

procures orders form its customers and forward the same to K.H. in Kolkata.

K.H. exports the goods directly to the buyers and receives the sale proceeds

from them in India. The party in Thailand canvases and procures the orders,

has to be paid Commission. K.H. desires to remit the same within the R.B.I.

Norms through official channels. Since all activities are done outside India

and none in India, Commssion payable to the party accrues and arises and

will be received by the party in Thailand. K.H. does not have any P.E. outside

India.

On the above facts does the case require to deduct any tax U/s 195 of the
Act?

Replies (1)
As per Section 195 of Income tax person making payment to an Non resident Indian is require to deduct TDS at the rate mentioned in income tax act or DTAA whichever lower. The Non Resident Deductee has to submit the following documents with deductor to avail the TDS rates as per DTAA a. Tax Residency Certificate (TRC) b. PAN card copy c. Self declaration d. Passport copy & Visa copy (if any)


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