No TDS on commission to Agents outside India if such agent pays income after deduction of commission

Ajay Kumar Singh Gaur Vs ITO (ITAT Agra)

Conclusion: Since assessee was a recipient of income in India after deduction of commission by the buyer outside India and no income had been received or paid inside India, which attracted TDS deduction in India, therefore, assessee was not liable to deduct TDS in India.

Held:  AO made disallowance under section 40(a)(ia) as assessee failed to deduct TDS on the commission paid by assessee to agents, who situated outside India. It was held that the commission was admittedly paid outside India. There was no situs in India. The modus operandi of assessee was clear that assessee was recipient of income in India after deduction of commission by the buyer made outside India . Thus, no income had been received or paid inside India, which attracted deduction of TDS in India and therefore, assessee was not liable to deduct TDS in India. In view of the above, the disallowance made u/s. 40(a)(ia) was deleted.

FULL TEXT OF THE ITAT JUDGEMENT

This appeal is filed by the assessee against the order dated 28.02.2018 passed by ld. CIT(A)-I, Agra for assessment year 2013-14 on the following revised grounds:

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