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2022 (9) TMI 1557 - DELHI HIGH COURTTDS u/s 195 - withholding tax deducted at source (TDS) - Present writ petition filed challenging the certificate issued u/s 195(2) directing the Google Cloud India Pvt. Ltd. (GCI) to deduct tax at source at the rate of 10% at the time of making payment to the Petitioner - Petitioner further seeks a direction to permit GCI to make payments to the Petitioner without deduction of tax at source during financial year 2022-23 relevant to assessment year 2023-24 under the Google Cloud Services Reseller Agreement - HELD THAT:- Issue notice. Learned senior standing counsel accepts notice on behalf of Respondent Nos.1 and 2. He prays for and is permitted to file a counter affidavit within six weeks. Rejoinder affidavit, if any, be filed before the next date of hearing. Registry is directed to tag the present writ petition along with WP(C) No.8720/2021 and list for final hearing on 13th January, 2023. Appropriate directions in regard towards the interim arrangement - although the impugned order directs 10% withholding, the deposit of 8% by GCI plus 2% Equalisation Levy admittedly being paid by GCI on remittances to the Petitioner should not be construed as any non-compliance of the impugned order so as to attract the provisions of Section 201 of the Act on GCI - HELD THAT:- As Respondent No. 2 has made the payments under consideration liable for a withholding at the rate of 10% in accordance with section 115A of the Act read with the DTAA. We direct that purely as an interim measure, the Petitioner would be entitled to receive its payment from GCI subject to a deduction of 8% to be paid progressively for financial year 2022-23 relevant to assessment year 2023-24 as well. This interim arrangement is being made under the orders of this Court. The deposit of 8% should not be treated as any non-compliance of the impugned order.
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