Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 820 - AT - Income TaxTDS u/s 195 - non deduction of TDS on foreign agency commission outside India for promotion of export sales outside India - P.E. in India - income accrues or arises in India - agent principal relation - Held that:- Non-resident commission agents based outside India rendering services of procuring orders cannot be said to have a business connection in India and the commission payments to them cannot be said to have been either accrued or arisen in India. In view of the decisions cited above (supra), we are of the considered opinion that the assessee is not liable to deduct tax under the provisions of section 195 of the I.T. Act on account of foreign agency commission paid outside India for promotion of export sales outside India. See Kikani Exports Pvt. Ltd. (2014 (9) TMI 96 - MADRAS HIGH COURT), Faizan Shoes Pvt. Ltd. (2014 (8) TMI 170 - MADRAS HIGH COURT) and EON Technology P. Ltd. [2011 (11) TMI 20 - DELHI HIGH COURT ] - Decided in favour of assessee.
|