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| The Tax Publishers2020 TaxPub(DT) 3038 (Ahd-Trib) INCOME TAX ACT, 1961
Section 195 Section 90
Where non-resident service provider rendered services of web promotion, social media management using many techniques such as web content development, search engine optimization to increase the site traffic but there was no sharing of knowledge or know-how or any technology to assessee during provision of concerned services, therefore, payment made by assessee could not be treated as fee for technical services in view of article 12 of Indo-US DTAA and no TDS under section 195 was called for.
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Tax deduction at source - Under section 195 - Fee for technical services - Payment made to US resident towards services of web promotion, social media management--Knowledge not made available
Assessee was engaged in web designing SEO services and online video management, etc., claimed deduction of payment made to ESM-SYSLLC, USA for obtaining services of data promotion, social media management and general consulting. AO held the payment to be in the nature of fee for technical services and accordingly, disallowed deduction for want of TDS under section 195. Held: Non-resident service provider rendered services of web promotion, social media management using many techniques such as web content development, search engine optimization to increase the site traffic. There was no sharing of knowledge or know-how or any technology to assessee during provision of concerned services, therefore, payment made by assessee could not be treated as fee for technical services in view of article 12 of Indo-US DTAA and no TDS under section 195 was called for.
REFERRED :
FAVOUR : In the assessee's favour.
A.Y. : 2013-14
IN THE ITAT, AHMEDABAD BENCH
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