A decision of the Madras High Court was recently published on whether commissions paid to overseas agents are subject to withholding tax. The case involved Farida Leather Company, an Indian resident producer of leather goods. In the 2010-11 tax year, Farida paid commissions to overseas agents to find buyers for its products and deducted the payments from its taxable income. In auditing Farida, the assessing officer determined that tax should have been withheld on the payments, and because Far…