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2018 (2) TMI 968 - AT - Income TaxTDS u/s 195 - payment made to non-residents towards the services rendered by them - non deduction of tds - existence of PE in India - income accrual in India - Held that:- The provision of section 5(2)(b) r.w.s. 9(1)(i) of I.T. Act are not applicable as the payee has not earned any income in India as the services by the foreign agents have been rendered outside India without having any PE or business connection in India.The Hon’ble Apex Court in the case of Toshoku (1980 (8) TMI 2 - SUPREME Court) held that commissions earned by the non-resident acting as selling agent for the Indian exporter wherein such non-resident was rendering services from outside India doses not accrue in India. Further the decision of the Hon’ble Supreme Court in the case of G.E. India Technology Centre P. Ltd. Vs. CIT ( 2010 (9) TMI 7 - SUPREME COURT OF INDIA ) has rightly supported the case of the assessee that tax is not deductible in the case of the assessee. Thus the non-resident commission agents had rendered services outside India and they were not having P E in India therefore, we uphold the decision of the ld. CIT(A) that the assessee was not liable to deduct tax on the commission paid to foreign agents - Decided in favour of assessee
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