2009 (3) TMI 33 - SC - Income Tax

TDS on salary paid in foreign country by foreign company to its employees working in India - S. 192(1) has to be read with S. 9(1)(ii) read with the Explanation. Therefore, if any payment of income chargeable under the head “Salaries” falls within S. 9(1)(ii) then TDS provisions would stand attracted, on account of services rendered in India - however SC gave relief where tax has been paid in India on such foreign income. Since issue is a nascent, penalty waived – 104 civil appeals disposed