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tds on commission to non resident

TDS / TCS 703 views 1 replies

deepak

G.M.

24 Points Posted on 12 August 2009

Hi Guys

I would like to post a question

I am running a company in Dubai - UAE and am working as an Agent for several indian based manufacturers who are exporting their merchandise into Dubai

I am taking care of the sale & marketing of their products here in my market among my clientele.

The commission that i make on these transactions is payable by the Indian Companies which they remit to me into my account in Dubai.

Is my commission income liable to incur TDS in India

Asking this because a certan supplier of mine has advised me that due to some rule change (recently) my income which they transfer out of india attracts TDS of 10 percent or so.

(it would be really surprised if it does, as i am living in dubai, my company is in dubai and im getting my money in dubai - in essence why should i pay anything to anyone in india , )

Can someone enlighten me on this.

The references / relevant articles/section nos of the Indian Income Tax guidelines will be helpful.

Replies (1)

Kamal Jain

FCA

200 Points Posted on 04 September 2009

Hi Deepak

I suppose you are an NRI within the meaning of Indian Income Tax Act 1961 and you do not have any permanent establishment in India.If so you are just need to issue a certificate to your indian Principals to the effect that .............you are an NRI and do not have any permanent establishment in India.

Alternatively your indian principals can approach to Income Tax Deptt for il rate of deduction of TDS on payments being made to you for which they can contact their CA or Tax Consultants to arrange this certificate.