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| The Tax Publishers2019 TaxPub(DT) 2371 (Ahd-Trib) INCOME TAX ACT, 1961
Section 195
When services were rendered outside India, payments were made outside India and there was no permanent establishment or business connection in India, commission paid to overseas agents could not be deemed to section 5(2)(b) read with section 9(1)(i) and, therefore, requirement to withhold tax under section 195 did not arise.
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Tax deduction at source - Under section 195 - Sales commission paid to non-resident -
Assessee claimed deduction of commission paid to various non-residents on export sales. AO disallowed deduction for want of TDS under section 195.Held: When services were rendered outside India, payments were made outside India and there was no permanent establishment or business connection in India, commission paid to overseas agents could not be deemed to section 5(2)(b) read with section 9(1)(i) and, therefore, requirement to withhold tax under section 195 did not arise.
REFERRED : GE India Technology Centre (Pvt.) Ltd. v. CIT (2010) 327 ITR 456 (SC) : 2010 TaxPub(DT) 2241 (SC).
FAVOUR : In assessee's favour.
A.Y. : 2010-11 & 2011-12
INCOME TAX ACT, 1961
Section 14A
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