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2019 (5) TMI 1372 - AT - Income TaxTDS u/s 195 - assessee has failed to deduct TDS while making payment to the non-resident commercial agent - addition u/s 40(a)(i) - HELD THAT:- Nature of services rendered by foreign agents required to be determined on the basis of the agreement, and if these services are simplicitor for procurement of some contract, and fulfillment of certain export obligations like logistic, warehousing etc. then these will not be termed as service in the nature of technical services or managerial and consultancy services”. These activities will not generate on invent any information which could be used in India for augmentation of manufacturing of drugs. On an analysis of the services rendered by CACMILSA, we are of the view that no element of managerial consultancy or technical services were being rendered by the commercial agent and the assessee was not required to deduct TDS on receipt - Decided in favour of assessee Allowable revenue expenditure - expenses incurred by the assessee in foreign country for registration of its products for marketing and promoting sales - HELD THAT:- As relying on TORRENT PHARMACEUTICALS LTD. [2013 (4) TMI 570 - GUJARAT HIGH COURT] expenses incurred by the assessee towards registration fees, evaluation and analysis charges, translation & notarization of dossiers require to be allowed to the assessee. TDS liability on Market research of new pharma products and market survey charges debited by the assessee - Held that:- These are the information which will be used by the assessee for exploring new business venture and enhancing its capacity to conduct new business. Certainly, such information will fall within the managerial, technical consultancy services, therefore, the assessee was required to deduct TDS. Since the assessee has failed to deduct TDS on these payments, they deserve to be disallowed.
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