TDS on commission paid for import of goods

[Jitender Gupta]

Is TDS applicable on commission paid to a non resident from Brazil for the goods imported in India through him ? and at what rate ?

commission for exports to non resident is exempt but what about commission paid for import of goods.

AI Summary

TDS Applicability on Commission to Brazilian Non-Resident for Imports Under Section 195 of Income Tax Act, 1961 A query was raised about the applicability of TDS on commission paid to a non-resident from Brazil for goods imported into India. The response clarified that TDS could apply under Section 195 of the Income Tax Act, 1961, depending on whether the commission is considered fees for technical services or business income. The default TDS rate is 10%, but the applicable rate may vary based on the Double Taxation Avoidance Agreement (DTAA) between India and Brazil. While commission for exports is typically exempt from TDS, import-related commission generally is not, unless specified by the DTAA. Consulting a tax professional is recommended for compliance.