TDS on Commission to non resident

[Reshma kochar]

Dear Experts,

Please help me out in a query.

Do Commission Income of a non resident for securing export orders for a Indian Company, will be taxable income in India and attract TDS ?

As Circular no. 23, dated 23-7-1969, Circular no. 163, dated 29-5-1975 and Circular no. 786 dated 7-2-2000 has been with withdrawn. and recent AAR rulling dated 22 feb 2012, in case of SKF Boilers and Driers Pvt.Ltd, stating that this commission income of non residents will be taxable in India. 

Please clarify, which stand we can take right now?

Thanks & regards,

Reshma

AI Summary

Debate on Taxability of Commission Income for Non-Residents: Is TDS Applicable Under Recent AAR Ruling and Provisions? A discussion forum addresses whether commission income earned by a non-resident for securing export orders for an Indian company is taxable in India and subject to TDS. The initial query references withdrawn circulars and a recent AAR ruling suggesting such income is taxable. Participants debate, citing various legal provisions and case laws. Some argue that if services are utilized in India, tax applies, while others contend that if operations occur entirely outside India, no tax or TDS obligation arises. The consensus leans towards non-taxability if the non-resident operates entirely outside India without a permanent establishment in India.