Tds for Commission paid to outside india

[sathish kumar]

Dear Sirs commission paid outsideindia is liable to Deduct TDS . Foreign Agent has PE in india . Please mention the relavant circulars or references. thank you,

[Anuj Gupta]

If the foreign Agent has PE in India then either you as a payer should or the Foreign Agent should approach the ITO to obtain the appropriate rate for TDS deduction.In the present case the CA should not take the TAX Rate Determination authority in his hands and should not issue any Form 15CB for the same.

AI Summary

TDS on commission: obtain ITO tax rate determination when foreign agent has a Permanent Establishment; do not self certify.
Where a foreign agent has a Permanent Establishment in India, commission paid to that agent is subject to TDS; either the payer or the foreign agent must approach the Income Tax Officer for an appropriate Tax Rate Determination, and professional advisers should not unilaterally determine the rate or issue a Form 15CB in lieu of the official determination.