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TDS in connection with overseas commission payment (URGENT)

05 March 2008

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.

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(Guest)

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)
Replied 05 March 2008

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

(Guest)

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.	"