Tds on commission to non resident

As per Section 195 of Income tax person making payment to an Non resident Indian is require to deduct TDS at the rate mentioned in income tax act or DTAA whichever lower.

And in above given query if person has not deducted tds for FY 2015-16 he will have to paid interest under section 200 and 220 of income tax act 1961 at rate 1% pm and non deposit at the rate 1.5% pm.

And the whole commission paid to nri will be disallowed as expense under income tax act 1961.