applicability of TDS on agency Commission - Professionals - Taxation - TIK Share
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applicability of TDS on agency Commission


Ankit Sharma

2013-08-28

One of My client have paid USD 6,000/- to Non Residen (China) towards Commission & Liasion Charges. Is TDS applicable on this ? Please provide me the Notification No. ?

CA  HEMANTH KUMAR Y.S

2013-08-28

Hi

It will be come under section 195 of IT act 1961, if the payment made from india to outside (NRI) the India so TDS to be deducted u/s 195 on such payment.

 

Regards

Hemanth

Chartered Accountants

 

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Ankit Sharma

2013-08-28

He has paid to foreign Company, which do not have any establishment in India.

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Mukesh Jain CA

2013-09-01

In the present case, sec 195 & DTAA becomes relevant. Sec 195 tells, any payment of taxable income to a non resident, tds needs to be deducted, how ever this is subject to sec 90 of the IT act. Accoring to sec 90, the provisions of IT or DTAA which ever is beneficial needs to be applied. Hence please check the DTAA of Indo china. This kind of income may not be taxable according to the DTAA.

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CA Pulkit Sharma

2013-09-02

Very well explained by mukesh.

However if TDS is deducted than TDS certificate should be issued to deductee. And deductee need to file his return to claim refund. He can choose DTAA or incometax provisions, whichever are beneficial to him.

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