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2014 (7) TMI 761 - AT - Income TaxNon-deduction of TDS on overseas payment of agency commission Disallowance u/s 40(a)(ia) of the Act Held that - Assessee is availing the services of non-resident agents for procuring export orders for which commission is paid - nonresident agents have no business connection nor they have any permanent establishment (PE) in India - non-resident agents are procuring orders for the assessee and are thus operating outside the Indian territory The decision in Assistant Commissioner of Income-tax Company Circle- II(1) Versus Farida Shoes (P.) Ltd. 2013 (11) TMI 907 - ITAT CHENNAI - payments to non-residents for procuring export orders are not assessable to tax in India also in GE Technology Cen. P. Ltd. Vs. CIT 2010 (9) TMI 7 - SUPREME COURT OF INDIA it has been held that if any sum is paid to the non-resident which is not chargeable to tax under the Act the assessee is under no obligation to deduct tax at source u/s.195 in respect of payments - The obligation to deduct tax at source arises only where the sum is chargeable to tax in India thus there was no infirmity in the order passed by CIT(A) Decided against Revenue.
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