In this paper we have introduce a four switch PWM (Pulse Width Modulation) inverter for controlling the operation of PMSM (Permanent Magnet Synchronous Motor). The inverter is controlled with 49 rule base fuzzy controller controlling the current component in the feedback loop. The torque of the machine is reduced with the help of second order filter stabilizing the output from the fuzzy controller. The second order torque harmonics are produced by DC capacitor voltage fluctuations are demonstrated first, and a very simple method for compensation is presented by introducing a novel non-orthogonal coordinate transformation. The design of the three phase four switch PWM inverter is modeled in MATLAB software with all graphical representations and reports generated with dynamic characteristics.