TDS rate if payment to NRI in UAE ( Commision paid on room rent or any other sale)

[ROHIT SHETTY]

TDS rate if payment to NRI in UAE ( Commision paid on room rent or any other sale). 1)Payment made directly to UAE parent company and as per the agreement and not to any permanent establishment in INDIA . 2) Whether this income acuree in India or UAE

AI Summary

Tax withholding on cross-border service fees depends on presence of permanent establishment and source of income.
Whether TDS applies to commissions paid from an Indian hotel to a UAE nonresident depends on the source of income and presence of a permanent establishment (PE) in India. Payments for services performed outside India by a nonresident without a PE are generally not Indian-sourced and typically not subject to TDS, whereas services rendered in India or through a PE may produce Indian-sourced business income subject to withholding. Applicable DTAA provisions and the factual service nexus to India must be examined to determine withholding obligations.