Budget 2012: Implement TDS on foreign commission, royalty, says FIEO
There has been a plethora of litigation with regard to applicability of TDS on foreign agency commission/royalties/offshore and professional services. TDS on foreign commission, royalty should be implemented, says FIEO.
By Agencies | Updated:
NEW DELHI: There has been a plethora of litigation with regard to applicability of TDS on foreign agency commission/royalties/offshore and professional services. TDS on foreign commission, royalty should be implemented.
The landmark judgment on the Vodafone case among several others which emphasizes the jurisdiction of tax administration; territorial nexus and sites services would hopefully close the issue of TDS on transactions in the course of exports.
This we hope will be clarified by the CBDT at the earliest as tax authorities are raising demand with penalty blocking the working capital of the exporters and adding to avoidable litigation.
The landmark judgment on the Vodafone case among several others which emphasizes the jurisdiction of tax administration; territorial nexus and sites services would hopefully close the issue of TDS on transactions in the course of exports.
This we hope will be clarified by the CBDT at the earliest as tax authorities are raising demand with penalty blocking the working capital of the exporters and adding to avoidable litigation.
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