Income Tax- TDS
sandeep chavan
(Querist) 31 January 2010
This query is : Resolved
We are exporter and need to pay commission to our overseas agent who is foreigner. Are we liable to deduct the TDS on commission payable to our foreigner agent. If yes at what rate and under what section?
Regds
Kumar Thadhani
(Expert) 31 January 2010
If the agreegate commission amount to be paid is less than one crore then tax deducted at source on aggrgate amount is at the rate of 10.3 percent and if it exceeds one crore then the tax rate deducted at source from agreegate amount is 10.775 percent in that particular financial yearunder section 195 of the Income-tac act 1961
A V Vishal
(Expert) 31 January 2010
In the case of remittance to a country with which a Double Taxation Avoidance Agreement is in force, the tax should be deducted at the rate provided in the Finance Act of the relevant year or at the rate provided in the DTAA, whichever is more beneficial to the assessee vide Circular : No. 728, dated 30-10-1995.
Your query is silent on the country of residence of the agent hence the rate is not prescribed in this post.
