TDS on Brokerage payble to Foreign company

TDS / TCS 1322 views 2 replies

Is TDS to be deducted on brokerage payble to the Foreign company in USD?

If yes, Pls aswer the bellow

1.Since foreigner do not have PAN no., how we should deposit the same to Income Tax.

2. How they can get the refund in their country.

Pls answer and provide if any notification /circulare to support.

Replies (2)

Section 195 of the Income-Tax Act, 1961 requires that any person responsible for paying a non-resident any sum chargeable under Indian tax law shall deduct income-tax thereon at the rates in force at the time of credit of such sum to the account of the payee or at the time of actual payment thereof, whichever is earlier.

TDS rate would be  10% or 20% (Please recheck)

It appears that the broker is non resident and operates outside India. In this case no part of his income arises in India. Therefore no tax is deductible under Section 195. Kindly refer to Cisrcular No. 786 dated 07.02.2000.


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