Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 2786 - AT - Income TaxTDS u/s 195 - payment made for rendering of any managerial or consultancy service rendered by non resident agent without TDS - Addition u/s. 40(a)(ia) - whether or not the payments in question can be treated as managerial or consultancy service rendered by non-resident? - HELD THAT:- The facts of the present case are akin to the facts of the decision in Toshoku Ltd.'s case [1980 (8) TMI 2 - SUPREME COURT]. In the instant case also the assessee engaged the services of non-resident agent to procure export orders and paid commission. The assessee is not liable to deduct tax at source when the non-resident agent provides services outside India on payment of commission. Services rendered by the non-resident agent can at best be called as a service for completion of the export commitment and would not fall within the definition of fees for technical services, we are the firm view that section 9 of the Act is not applicable to the case on hand and, consequently, section 195 of the Act does not come into play. In view of the above finding, the decision of the Supreme Court in Transmission Corporation of A.P. Ltd.'s [1999 (8) TMI 2 - SUPREME COURT] relied upon by the learned standing counsel for the Revenue is not applicable to the facts of the present case. We find no infirmity in the order of the Tribunal in confirming the order of the Commissioner of Income-tax (Appeals).' - Decided against revenue.
|