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TDS in connection with overseas commission payment (URGENT)

TDS 1049 views 3 replies

sandeep Banerjee

Service

39 Points Joined September 2007

My company is going to procure material from overseas supplier through one overseas agent to whom we have to pay commission of $80,000/- through LC. Please confirm whether such payment of overseas commission will attract TDS. If so, uner which provision of I.T. Act, 1961.

Replies (3)

Guest

428680 Points Joined August 2012

sec 195 is attracted any payment ( this is covered under any other income) to a nonresident company tds is is required to be deducted @ 22.66% ( including surcharge 10% and edn and SHE 3%)

Rohit

Service

38 Points Joined February 2008

I think when the agent is not having any PE in India seciton 195 may not apply.

Guest

428680 Points Joined August 2012

Originally posted by :sandeep Banerjee
"	My company is going to procure material from overseas supplier through one overseas agent to whom we have to pay commission of $80,000/- through LC. Please confirm whether such payment of overseas commission will attract TDS. If so, uner which provision of I.T. Act, 1961.	"