TDS on Payment of commission to Non-Residents
– By CA Puja Borar
Residents in India acquire the services of non-resident agents for canvassing of overseas contacts, for export of their products and/or for the provision of ancillary support services etc. Commission is paid to the non-resident agents in lieu of the services rendered by them. The chargeability and deduction of tax on such payments has been a controversial subject. This article intends to discuss the issue in the light of the applicable provisions, circulars issued and recent judicial pronouncements pertaining to the same.