Dear Sir
I have pay commission to the agent in Bangladesh for the export orders he gives to our company on a commission basis for which i have to enter into a contract agreement with them. In the agreement their is a point stating as "AT PRESENT NO TAX DEDUCTED @ SOURCE AND SERVICE TAX ON THE ORDERS PROCURED BY A FOREIGN AGENT OUT SIDE CHINA. HOWEVER, IN FUTURE WE WILL ACT ACCORDING TO THE PREVAILING LAWS IN FORCE. BEFORE APPLYING THE TAX DEDUCTION AGAINST THE AGENT’S COMMISSION, IT MUST BE INFORMED TO THE AGENT BY THE SUPPLIER"
Is is correct or i have to make an specification on the deduction of tds to them if applicable and what is the percentage and how to be deducted
Ramachandran