Procurement of orders by South African company for Indian company on commission basis is not taxable in India

S. 9, Treaty with South Africa; in favor of taxpayer: – Z, a South African company, offered to promote and market the products of the taxpayer, an Indian company, on commission basis. Z will procure and negotiate orders and forward these to the taxpayer. The taxpayer will execute the orders directly and will receive the consideration in India. Z will render all services outside India and will not maintain any PE in India. On the taxability of the amounts paid by the taxpayer to Z and withholding tax liability, held, such amounts being commission received could be taxed only in South Afri...