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-   -   Can Indian company pays commission to USA registered company? (https://www.askmehelpdesk.com/showthread.php?t=665958)

  • Jun 1, 2012, 12:07 AM
    mayurkamdar
    Can Indian company pays commission to USA registered company?
    Hello,
    r.r. Corporation is indian based company and would like to give annual commmission to usa registerd company r.r.inc.llc
    For helping indian company on exports.

    Question is
    1. What will be the tds deduction sud be by indian company and which form to be used.
    2. Will usa based company will get benefit of claiming tax paid in india in their usa inland revenue annual return of income? And will they get refund if they have no tax to be paid as per income statement?
  • Jun 1, 2012, 03:16 AM
    paraclete
    Quote:

    Originally Posted by mayurkamdar View Post
    Hello,
    r.r. Corporation is indian based company and would like to give annual commmission to usa registerd comapny r.r.inc.llc
    for helping indian company on exports.

    Question is
    1. What will be the tds deduction sud be by indian company and which form to be used.
    2. Will usa based company will get benifit of claiming tax paid in india in their usa inland revenue annual return of income? And will they get refund if they have no tax to be paid as per income statement?

    To answer you last question where there are reciprical tax agreements then allowance is made for tax paid on revenue earned in another country but you cannot get a refund for tax you have not paid.

    Please don't use SMS shorthand in these questions as it is difficult to get the sense of what you are saying Certainly a tax deduction would be allowed for commissions paid

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