TDS U/s 195 Commission paid to foreign account under DTAA

To claim this benefit, one needs to know whether the country one resides in or earns income in has a DTAA with India. One has to file Form 10F, a tax residency certificate and self declaration in the prescribed format to the entity responsible for deducting tax at source.

Thanks for the information. Grateful.

Authority for Advance Rulings, Uttarakhand Midas Foods (P.) Ltd., (AAR- UTTARAKHAND)

According to the AAR tax should not be deducted on buying services from an agent who is situated in foreign country as the service are provided in foreign country and not in India.
So section 195 for deduction won't be applicable and you don't have to deduct TDS.

Agree with above

Yes...

Form 10F is for Indian National earning income in DTAA country. In my case I am paying Buying services fee (U/s 195) to Agent in China to Chinese National. Now which form is required to obtain 15CA & 15 CB from CA.

You need to obtain the following documents from the transferee (Agent) –

1. Tax Residency Certificate (TRC) issued by his Government
2. Permanent Establishment Declaration Letter on his Company Letter Head to you
3. FORM 10F - Required for the relevant Financial Year

 

Commission paid to overseas agents that do not have PEs in India and carry out all functions outside India, will not attract TDS. Commission paid to overseas agents situated wholly abroad, is not taxable in India.