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| The Tax Publishers2020 TaxPub(DT) 1426 (Mum-Trib) INCOME TAX ACT, 1961
Section 195 Section 9(1)(vii)
ICOM USA offered services only to its members and these services were subject to only those members who had to get membership by becoming a member in said entity integrated net based marketing and media communication services and since assessee had made payment for subscription only, same did not fall within ambit of FTS and since ICOM had no PE in India and all services were rendered outside India there could be no taxability here in India and therefore, no TDS was called for.
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Tax deduction at source - Under section 195 - Subscription charges paid to non-resident towards net based integrated marketing and media communication services treated as fee for technical services (FTS) by AO -
Assessee made payment to ICOM USA towards marketing and media communication services. AO held the payment as fee for technical services (FTS) and accordingly denied deduction for want of TDS.Held: ICOM offered services only to its members and these services were subject to only those members who had to get membership by becoming a member in said entity integrated net based marketing and media communication services and since assessee had made payment for subscription only, same did not fall within ambit of FTS and since ICOM had no PE in India and all services were rendered outside India there could be no taxability here in India and therefore, no TDS was called for.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2015-16
IN THE ITAT, MUMBAI BENCH
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