TDS on payment to Indenting agent in Pakistan

[Guest]

We have an Indenting Agent in Pakistan who finds customers for our goods & we supply directly to that customers.

We have to pay the commission to our agent  in Pakistan for his service.Ours is a Pvt. Ltd. Company whereas our agent is a proprietory firm & does not have any office in India.

Have we to deduct TDS from the payment made to our Agent in Pakistan Please guide us.

[CAGOPALJI AGRAWAL]

To my view, withholding tax is not deductible.

AI Summary

Withholding tax on commission to a Pakistan-based indenting agent may not be required when the agent lacks an office in India. Payments of commission to a Pakistan-based indenting agent who is a proprietorship without any office in India are not required to have withholding tax deducted, according to the advisory reply; the agent locates customers while the Indian company supplies goods directly, and on these facts withholding is considered unnecessary.