Dear Members,
We are manufacturer and exporter of ready made garments. During the current F.Y.ending Mar'17, we have to pay commsission amouinting to Rs.50.00lacs to a Non Resident Company, for procuring orders. The Non Resident Company is based in UAE and do not have any office in India, as well as they do no have a PAN. Also note that the DTAA is silent on TDS on Commission.
My question is whether to deduct TDS, if so at what rate and under which section.
If the members suggest that TDS is not to be deducted then under which section can we take shelter.
According the me as per the ammendment to Sec195 in June'16, we should deduct TDS.
Please provide your esteemed advices.
CAclubindia
