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2010 (11) TMI 193 - AT - Income TaxFees for technical services - International transaction - TDS - Held that: - The erection of machines was thus work of many local workers. The two technicians only supervised the erection and giving technical advice in connection with the erection. - Technical fee is for technical advice in connection with erection and the actual erection was done by others. - The payment of fee is only for giving technical advice in connection with the erection and not for undertaking the erection. - The payment in question cannot be said to be a payment for assembly of machines. Thus the payment in question cannot be said to fall within the exclusion clause of Expln-2 to section 9(l)(vii) of the Act. TDS u/s 195 - Held that: - the payment in question would not be chargeable to tax in India because admittedly, the person who rendered services were not present in India for the required number of days as envisaged by Article 5(j) of the DTAA. Therefore the amount in question will not be chargeable to tax in the hands of GTA. Thus there was no obligation on the part of the appellant to deduct tax at source before making payment to GTA.
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