Whether Commission Earned in Foreign Exchange Taxable in India?
January 20, 2010 by taxworry · Leave a Comment
I am negotiating with a US based supplier of goods to arrange the order from India. They will pay commission to me based on the confirmed order/payment from the buyer. The commission will be in foreign currency. What is the income tax liability on such commission received from the overseas supplier.
Vandana Kumar , Gandhidham
Since the commission will be received by you as RESIDENT of India from a foreign entity , it is fully taxable in your hand. There is no deduction under any provision of I T Act under which you will get the deduction for earning in foreign exchange.
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