| |
| The Tax Publishers2020 TaxPub(DT) 3863 (Ind-Trib) INCOME TAX ACT, 1961
Section 195
SII, USA had not rendered any technical or managerial services to assessee but was merely project work procurement agent and, therefore, payment towards commission for procurement of orders and reimbursement of incidental charges could not be held as fees for technical services and since non-resident was having no permanent establishment or business connection in India, concerned payment could not be subjected to deduction of tax at source under section 195.
|
Tax deduction at source - Under section 195 - Payment of commission to non-resident for procurement of orders and reimbursement of incidental charges -
Assessee made payments to SII, USA towards commission for procurement of orders and reimbursement of incidental charges incurred. AO held the payment as fee for technical services and accordingly disallowed deduction for want of TDS under section 195. Held: SII, USA had not rendered any technical or managerial services to assessee but was merely project work procurement agent and, therefore, payment towards commission for procurement of orders and reimbursement of incidental charges could not be held as fees for technical services and since non-resident was having no permanent establishment or business connection in India, concerned payment could not be subjected to deduction of tax at source under section 195.
REFERRED :
FAVOUR :
A.Y. : 2015-16 & 2016-17
IN THE ITAT, INDORE BENCH
 SUBSCRIBE FOR FULL CONTENT
|