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| The Tax Publishers2021 TaxPub(DT) 1868 (Karn-HC) : (2021) 434 ITR 0069 INCOME TAX ACT, 1961
Section 195
AE had rendered services out of India in the form of placing orders with manufacturers who were already outside India. The commission was paid to AE out of India as income of non-residents by way of commission could not be considered as accrued or arisen or deemed to accrue or arise in India and, therefore, no TDS was called for under section 195.
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Tax deduction at source - Under section 195 - Commission paid to overseas AE for services rendered outside India -
Assessee-company engaged in the business of wholesale trading claimed deduction of commission paid to overseas AE. AO disallowed deduction for want of TDS under section 195. Assessee's case was that AE rendered services outside India in the form of placing orders with manufacturers and commission to AE was remitted abroad.Held: AE had rendered services out of India in the form of placing orders with manufacturers who were already outside India. The commission was paid to AE out of India as income of non-residents by way of commission could not be considered as accrued or arisen or deemed to accrue or arise in India and, therefore, no TDS was called for under section 195.
Followed:Exotic Fruits Pvt. Ltd. v. ITO [ITA Nos. 1008 to 1013/Bang/2012, dated 4-10-2013] : 2014 TaxPub(DT) 2190 (Bang-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14
IN THE KARNATAKA HIGH COURT
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