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2022 (3) TMI 1064 - AT - Income TaxTDS u/s 195 - Levy of interest under 201 (1)/201 (1A) - assessee was held to the assessee-in-default for want of TDS and it was also saddled with interest for the said default - payment was predominantly towards cost of parts and small portion towards fitment and repair charges. The expenditure so incurred was reimbursed by the assessee to non-resident distributors on actual basis - HELD THAT:- The services have been carried as well as utilized outside India. There is nothing on record that any of the payees has any permanent establishment in India. Therefore, as held by the bench M/s Nissan Motors India Pvt. Ltd. [2018 (3) TMI 1956 - ITAT CHENNAI] there would be no obligation for assessee to deduct tax at source. We also concur with the submissions of Ld. AR that the warranty obligation being part and parcel of sales transactions and therefore, the same could not be held to be ‘fees for technical services’. Therefore, considering the fact of the case, we direct Ld. AO to delete the impugned demand as raised against the assessee. - Decided in favour of assessee.
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