Urgent: tds on foreign commission (non audit proprietorship)

Hi,

We would be paying a monthly salary and sales commission to a British citizen from next month onwards. Our company does not come under Audit (turnover less than 1 crore) and do not have TAN Number. As the companies that do not fall under Audit do not need to deduct TDS, but our CA says, since the commission is going to a Foreigner you have to deduct TDS. Another CA friend says you are not liable to apply for TAN and deduct TDS as you have not crossed audit limit. Who is right? Please help urgently.