Payment made to non resident liable to tds

Haresh Kumar (Querist) 30 October 2023 This query is : Resolved
I would like to pay a non-resident firm in Dubai USD 250,000 as commission for setting up an ocean freight shipment from Russia to India.

My question is that

Is this transaction subject to TDS deduction under the Indian Income Tax Act?

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This discussion explores whether a USD 250,000 commission payment to a non-resident Dubai firm for arranging ocean freight from Russia to India is subject to Tax Deducted at Source (TDS) under Indian tax law. The consensus among contributors is that such payments are indeed taxable and require TDS deduction before settlement, though one participant suggests consulting a local Chartered Accountant for further clarification on potential formalities.

kavksatyanarayana (Expert) 30 October 2023
In my view not necessary but consult a local CA.

T. Kalaiselvan, Advocate (Expert) 30 October 2023
The TDS is to be made for any such payment whether it is a NRI or a resident Indian.
It is a commission amount, hence you have to deduct the due tax for the transaction before settlement of the commission amount

P. Venu (Expert) 01 November 2023
In my view, the payment is liable for income tax, but may entail many other clearances and formalities.

Advocate Rajamahendra Varma P (Expert) 16 November 2023
Yes, it is taxable amount and TDS needs to be deducted.

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