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2018 (3) TMI 294 - AT - Income TaxTDS u/s 195 - payment of export commission made by the assessee company to two non-resident agents for services rendered outside India - non deduction of tds - addition u/s. 40(a)(ia) - Income deemed to accrue or arise in India - Held that:- It is beyond doubt the payment for the commission was not received by the foreign agents in India. Therefore, the same cannot be taxed in India as per clause (a) of sub-section (2) of section 5 of the Act. Similarly, we further note that the income was received by the foreign agents on account of services rendered by then in their respective countries. Therefore, we conclude that such income has not accrued or arisen in India and consequential not chargeable to tax in India. Assessee paid Commission to foreign agent is not the income chargeable to tax in India. Once an income is not chargeable to tax in India then the question of deducting TDS under the provision u/s 195 of the Act does not arise. - Decided in favour of assessee
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