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Tds on commission for foreign company

anupam (Accountant) (38 Points)

07 February 2015

Dear Sir,

Please clarify me about tax deduction rate on commission paid to foreign company

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6 Replies

monika ahuja (Student CA Final ) (85 Points)
Replied 07 February 2015

Yes.as per 195 you are required to deduct tds.

As per rates specified in relevent section

Roshan Thomas (C.E.O ) (356 Points)
Replied 07 February 2015

Rate for payment of commission not separately specified u/s 195, so tax has to be deducted @ 30%

anupam (Accountant) (38 Points)
Replied 08 February 2015

thanks For Reply,

Sir,

my second quary is that a australian company take benifits of this tax Yes/No and How?

J. K. Ratan (Compliance Advisor) (794 Points)
Replied 08 February 2015

Dear Sir That foreign can enjoy the benefit of DTAA. India has signed a bileteral Agreement with Australia and that company can take the benefit of DTAA according to their respective law. For taking this benefit he will have to obtain a TRC from Indian Tax Authority

Nagaraju S (Manager - Finance and Accounts) (21 Points)
Replied 06 August 2015

Hi,

We suppose to pay a Sales commission to a Company situated at SRILANKA. Can you please let us know whether TDS is applicable and if applicable at what %.

Regards

Nagaraj