TDS on Commission Income of non resident for services outside India

Held in SKF Boilers & Driers (P.) Ltd. by AAR (dtd 22-02-2012):18 taxmann.com325

 Fact that agents have rendered services abroad in form of soliciting orders and commission is to be remitted to them abroad are wholly irrelevant for purpose of determining situs of their income; income arising on account of commission payable to two agents is deemed to accrue and arise in India, and is taxable under the Income-tax Act in view of specific provision of section 5(2)(b) read with section 9(1)(i); provision of section 195 would apply, and rate of tax will be as provided under Finance Act for relevant year