TaxTMI 
TaxTMI 
Ref to reply form Mr Jain dtd 1/1/10 that no TDS to be deducted on commissions to parties who are having office in India. Please confirm circular no and SC ruling on the same.
Circular - No applicability of TDS
07 Jan 2010 
1 Reply 
1583 Views Asked by
Non-resident source rule: commissions for purchases in India destined for export fall outside Indian-source income, so withholding may not apply.
Income of a non-resident arising from operations confined to purchase of goods in India for export is not deemed to accrue or arise in India; consequently, commission payments strictly tied to such purchase-for-export operations are outside the Indian source of income and the withholding provisions based on Indian-sourced income do not apply. (AI Summary)
Income of a non-resident arising from operations confined to purchase of goods in India for export is not deemed to accrue or arise in India; consequently, commission payments strictly tied to such purchase-for-export operations are outside the Indian source of income and the withholding provisions based on Indian-sourced income do not apply. (AI Summary)