TDS ON COMMISSION PAYMENT TO FOREIGN COMAPNY

[SUMEDH AYARE]

Dear Sir 

We have importing goods (baby products) from one company (non-resident) in Hongkong. We have remitted them. Now that company has raised one invoice towards commission.  Whether we need to deduct TDS ?? - What is the rate of TDS.  or  How to save the TDS.

Regards

Sumedh 

[Sanjeet Kumar]

Dear 

You have to deduct the TDS on the amount at the rate mentioned in section 195 or 194H whichever is higher. 

If you want to save the TDS Amount. Then suggests your seller to take DTAA exemption certificate from the income tax department as applicable to him. On basis of this certificate you can reduce the your TDS Liab. 

[satbir singhwahi]

Pl refer case

IN THE ITAT BANGALORE BENCH B

Exotic Fruits (P.) Ltd. Versus Income-tax Officer (International Taxation) Ward -1(1), Bangalore 

(2013 (10) TMI 826 - ITAT BANGALORE)

 

N. BARTHVAJASANKAR, VICE-PRESIDENT

AND GEORGE GEORGE K, JUDICIAL MEMBER

IT APPEAL NOS. 1008 TO 1013 (BANG.) OF 2012

[ASSESSMENT YEARS 2008-09 TO 2010-11]

OCTOBER 4, 2013 .

It can help u for nil tds

ORDER

[SPIROTECHHEATEXCHANGERS PVTLTD]

You have to pay without TDS on the basis 15CB certifcate received from CA.

AI Summary

TDS on commission: withhold under section 195 unless a DTAA exemption or Form 15CB permits lower or nil deduction. Payment of commission to a non resident is subject to withholding tax under Indian law, to be assessed under section 195 (and where relevant section 194H). The payer must deduct tax at the applicable statutory rate unless the foreign payee produces a DTAA exemption certificate permitting lower or nil withholding, or the payer secures appropriate certificates or tribunal support (including Form 15CB) to lawfully remit without deduction.