Tds on foreign payments

agree with above sec 195 applicable

Agree wit U S Sharma. Sec 195 Applicable.

I think the income received by the foriegn agency is not accrued/arised/deemed to accrue or arised in India/ as you mentioned that the agnecy has no branch in India. So the Income is not taxable in India. Please refer section 9.

For attracting taxing statute, there has to be some activity through permanent establishment and, if income arises without any activity of permanent establishment, even under DTAA, taxation liability in respect of overseas services would not arise in India.

case laws CIT v. Hyundai Heavy Industries Co. Ltd. [2007] 161 Taxman 191/291 ITR 482 (SC).

So i think in your case no tax is required to be deducted

agree with rk singh

yes tds is deducted because income arrised/accrued in india

so please deduct the tds

agree with all....section 195 applies...

Dear All

In case of payment made to foreign agent ( No Branches In India)  Commission, Section 195 NOT APPLICABLE , so TDS Not Applicable.

Regards:

TRILOCHAN
 

No need to deduct TDS on Foreign commission if he doesnt have office in India. 

If the foreign Agent does only order procurement and does not indulge in market survey or other allied activities then there is no requirement to deduct TDS for the commission payment outside India.

Anuj

+91-9810106211

femaquery @ gmail.com

A foreign agent operates in his own country and receives his income outside India and hence such an agent is not liable to be taxed in India (Refer Toshoku Ltd 125 ITR 525 SC).  Though circular number 786 is withdrawn, this decision which held that the foreign agent's commission is not taxable in India is relevant.  Accordingly there would be no need to deduct tax at source.

Pls refer section 195 and DTA as well. You ll have to examine on country to country basis by checking DTA with respective counbtry. Also provisions of DTA  will prevail over provisions of Income Tax Act to the extent they are benificial to the assesee.

Pls refer section 195 and DTA as well. You ll have to examine on country to country basis by checking DTA with respective counbtry. Also provisions of DTA  will prevail over provisions of Income Tax Act to the extent they are benificial to the assesee.