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.
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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.
Yes, TDS (Tax Deducted at Source) can apply to commission paid to a non-resident, including non-residents from Brazil, in certain circumstances. However, the applicability depends on the nature of the transaction and the provisions under the Income Tax Act, 1961.
Commission Paid for Imports into India
In the case of commission paid to a non-resident for goods imported into India, the tax treatment can differ based on the nature of the services provided by the non-resident. The commission could be subject to TDS under Section 195 of the Income Tax Act if it falls under the category of fees for technical services (FTS) or income from business or profession.
Key Points:
It would be advisable to consult with a tax professional to ensure compliance with TDS provisions and to verify the correct TDS rate in light of any DTAA benefits.