Commission paid to NR agent for procuring export orders was not FTS

IT/ILT : Commission paid by the assessee to the non-resident agent for procuring orders for leather business from overseas buyers– wholesalers or retailers is commission simpliciter. The services rendered by the non-resident agent can at best be called as a service for completion of the export commitment. The services provided by the non-resident agent are not technical services. The assessee is not liable to deduct tax at source when the non-resident agent provides services outside India on pay