An Indian company engaged in providing services appointed an agent outside India who get the contracts for the company. Agent is and individual NRI and do not have PE (Permanent Establishment) in India.
Company provides services to clients from India and receives payments in foreign currency. Company, in turn, pays commission to the agent as per pre determined percentage of contract value.
Question raised here is whether company is required to deduct tax at source on commission payable to NRI agent?
CAclubindia
