Applicability of TDS on commission to foreign agents paid outside india.

[satbir singhwahi]

circular no.7/2009(f.no.500/135/2007-ftd-I) dt 22.10.2009 has withdrawn circular 23 dt 23.07.1969, 163 dt 29.05.1975, 786 dt 7.02.2000. in view these whether commission to foreign agents outside india can be paid , whether tds is applicable, what one is to comment in form 15CB.

AI Summary

Debate on TDS applicability for foreign agents without PE in India; AAR decision's impact questioned against higher court rulings. A discussion on the applicability of Tax Deducted at Source (TDS) on commissions paid to foreign agents outside India highlights differing perspectives. One participant notes that commission payments to foreign agents without a Permanent Establishment (PE) in India are not subject to TDS, with a NIL rate applicable in Form 15CB. Another participant questions the impact of a recent Authority for Advance Rulings (AAR) decision, while a third participant argues that the AAR ruling has limited influence, citing more relevant case law from the Supreme Court and Delhi High Court that should guide the matter.