GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

Interesting Cases for TDS u/s 195 - Foreign Remittance from India

Income Tax - Direct Tax Code - DTC - By: - CA Rohit Gupta - Dated:- 21-3-2015 Last Replied Date:- 30-12-1899 - International Tax Update Peculiar Cases where Courts held Assessee Liable for Deduction of TDS u/s 195 Withholding taxes u/s 195 in respect of transactions with Non-Residents has always been a bone of contention between Assessee and tax authorities. Though liability for deduction of TDS is clear in respect of some transactions like royalties, fees for technical services, interest etc., .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nce Charges: Usance charges paid to non-resident on import purchase by assessee would be considered as 'interest' income (ACIT v. Bhavani Enterprises) 2015 (3) TMI 545 - ITAT PANAJI Usance Interest: 'Usance interest' paid to non-residents by Indian company for availing credit under irrevocable letter of credit for delayed payments for purchase of raw materials is interest under section 2(28A), being an income deemed to have accrued or arisen in India under section 9(1)(v)(b) (Un .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

thus, assessee was liable to deduct tax at source while making said payment ITO v. Cross Tab Marketing Services (P.) Ltd. 2014 (9) TMI 193 - ITAT BANGALORE Marketing Survey: Payment to a foreign company for marketing survey and identifying potential foreign customers for assessee's product were only consultancy services taxable in India and, hence, assessee was bound to deduct tax under section 195. English Indian Clays Ltd.v. ACIT 2013 (11) TMI 1368 - ITAT COCHIN Reimbursement of audit f .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ly right to use know-how, issue of shares for same constituted royalty, liable for TDS u/s 195. BIOCON Biopharmaceuticals (P.) Ltd. V. ITO 2015 (3) TMI 684 - ITAT BANGALORE Sale of Indian Property by NRI: Where seller of Indian property was NRI according to address given in sale deed, assessee-purchaser ought to have made TDS under section 195 on sale consideration payable to NRI seller, failing which he was to be treated as assessee-in-default under section 201(1). If NRI purchaser fails to ta .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sideration was paid to said co-owner (R. Prakash V. ITO 2015 (3) TMI 682 - ITAT BANGALORE) Downloading software: Payment made by assessee to non-residents for downloading their licenced software amounted to payment of royalty and, thus, assessee was liable to deduct tax at source while making said payment. (Cosmic Circuits (P.) Ltd. V. ITO 2015 (3) TMI 683 - ITAT BANGALORE) Purchase of Software: Assessee was held liable to deduct TDS on payment made to non-resident for purchase of software bec .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lectric-power project of NTPC as a sub-contractor of another Thailand based company ITDL, in view of fact that ITDL provided certain machinery on hire to assessee, tax was required to be deducted at source while making payment of hire charges even though said payment was not made in cash and it was merely adjusted from amount due to assessee on account of execution of contract work. Right Tunneling Co. Ltd. V. ADIT 2014 (9) TMI 312 - ITAT DELHI Transponder Fees: Payment of fees for use of satel .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

availed services of repairs of its machinery from non-residents which included assistance for preventive maintenance - Assessee made payment of repair charges without deducting tax at source since services in question were not mere repairs but were towards preventive maintenance, it was to be concluded that German company was providing technical assistance and services, and, thus, payments made for said services amounted to 'fee for technical services' . In view of above, assessee was li .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version