FACTS OF THE CASE
XYZ is a fashion design school in Italy, which offers many courses on Fashion Designing. Many students from India take admission in XYZ for the courses. In India students can directly approach XYZ for admission or they also can approach a firm ABC in India for admission in XYZ. Students also have the option to make payment of course fees directly to XYZ or they can even make payment to ABC which in turn makes payment to XYZ. ABC gets commission from XYZ directly or sometimes ABC deducts their commission while making payment of course fees to XYZ.
1. Is TDS applicable as per Income Tax or as per DTAA on payment of course fees by ABC to XYZ on behalf of students?
2. What is the applicability of TDS on commission recd from XYZ by ABC?
3. Since XYZ is paying commission to ABC from foreign without deducting TDS. Is there any provision that ABC has to deduct & deposit TDS as receiver?
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