Circular - No applicability of TDS, Income Tax

[excise scl]

Ref to reply form Mr Jain dtd 1/1/10 that no TDS to be deducted on commissions to parties who are having office in India. Please confirm circular no and SC ruling on the same.

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[Rama Krishana]

You may read the section 9(1)(i) - explanation 1(b) which is run as, "(b) in the case of a non-resident, no income shall be deemed to accrue or arise in India to him through or from operations which are confined to the purchase of goods in India for the purpose of export ;" Therefore, the view of Mr. Jain was correct. Basic provision of Income Tax Act, 1961 clears the situation itself.