greeting
our company export goods to france. In france an agent was appointed. Agent generate an invoice for commission in euro there is no p/e in india of agent. kindly advise is TDS required to be deducted u/s 195.
Is there any possibilty that buyer pay directly to agent and after deducting commission export Payment paid to us. This is allowed by FEMA or not.
Kindly revert ASAP.
Thanks
Ritesh Khurana
Export Company Questions TDS Deduction on Commission to Non-Resident Agent Under Section 195; Clarification Advised A company exporting goods to France queries about the necessity of deducting TDS under Section 195 for commission payments to a non-resident agent without a permanent establishment in India. Expert advice suggests that TDS may not be required since the income is not deemed to accrue in India, supported by past legal precedents. However, the withdrawal of a supporting circular complicates the issue, and applying for clarification from the Assessing Officer is recommended. Direct payment of commission by the buyer is not allowed per RBI regulations. Another company faces a similar situation and seeks updates on the resolution. (AI Summary)
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