Tds on payment of out side india

[Asked by Guest]

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

AI Summary

Tax deduction for nonresident commission hinges on Indian taxability and source nexus; procedural relief may be sought from authorities.
TDS on payments to a nonresident agent applies only if the income is taxable in India-i.e., received or deemed received in India or accruing or arising (or deemed so) in India. If the agent has no permanent establishment, services are performed outside India and payment is remitted abroad through banking channels, such receipts generally do not meet the chargeability tests and ordinarily would not require TDS. Withdrawn departmental guidance creates uncertainty; an application to tax authorities and expert advice is advisable. Direct deduction by the buyer is restricted by the central bank master circular.