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.
Private Limited Company Seeks Guidance on TDS Deduction for Commission Payments to Pakistani Indenting Agent A private limited company is seeking guidance on whether to deduct Tax Deducted at Source (TDS) from commission payments to an indenting agent based in Pakistan. The agent, a proprietorship without an office in India, facilitates customer connections for the company's goods. A respondent, identified as a chartered accountant, advises that withholding tax is not required on these payments. (AI Summary)