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 

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.