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2018 (4) TMI 866 - AT - Income TaxTDS u/s 195 - Withholding tax on reimbursement of expenses made to IBS America Inc. u/s 201 - main contention of the assessee’s Counsel is with regard to reimbursement of expenditure pertaining to salary and overhead costs in relation to IBS Projects and does not include any element of profit so as to deduct TDS u/s. 195 - Held that:- The assessee has not substantiated the veracity of the claim by producing the agreement entered into with IBS, America. It is the primary duty of the assessee to show that it is a reimbursement of expenditure. The assessee has not produced the relevant documents to prove that it was reimbursement of expenditure. Therefore, in the interest of natural justice, we remit this issue to the file of the Assessing Officer for fresh consideration with a direction to the assessee to prove the same. Hence, this ground raised by the assessee is remitted to the file of the Assessing Officer for fresh consideration. Withholding taxes on marketing support charges paid to Avient Solutions Limited UK u/s. 201 - Held that:- As such the assessee cannot be called upon to comply with the provisions not in force at the relevant time but introduced later by retrospective amendment so as to deduct TDS on the impugned payments. In our opinion, the assessee cannot be required to comply with the provisions as this was not in the statute book at the time of incurring the impugned payments. To that extent, the Ld. AR’s argument is justified. However, if the services are rendered in India or payee has residence or business or business connection in India or services utilized in India, then the assessee is liable to deduct TDS. There is no finding in the order of the lower authorities whether the service is rendered in India or utilized in India with regard to the impugned payments. Withholding tax on payment of legal representation charges to Simpson & Grierson, New Zealand u/s. 201 - Held that:- In our opinion the assessee has to prove that the services were rendered outside India and the same was utilized outside India and the payee is having no business or business connection in India. Hence in the interest of natural justice, we remit this issue to the file of the Assessing Officer for fresh consideration.
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