Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Forum Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database More...
Extracts
Home List
← Previous Next →

Uniphos Environtronic Pvt. Ltd. Versus The DCIT CPC-TDS, Ghaziabad

Higher rate of TDS @20% for non-furnishing of PAN - proceedings under section 200A - whether cannot be at a rate prescribed u/s 206AA which is higher than the rate at which the relevant income is chargeable to tax under Act or DTAA - DTAA between India and GermanyHeld that:- As decided in the case of Infosys BPO Ltd [2015 (9) TMI 792 - ITAT BANGALORE ] in which it was held that the provisions of IT Act, 1961 cannot override the provisions of DTAA. - We noticed that the assessee had deducted .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

l findings, in our considered opinion the ld. CIT(A) has not substantiated the sustaining of impugned demand raised by the assessing officer ,therefore, we allow the appeal of the assessee. - ITA No. 947/Ahd/2016 - Dated:- 6-2-2017 - R. P. Tolani, Judicial Member And Shri Amarjit Singh, Accountant Member For The Revenue : Shri Dileep Kumar, Sr. D.R. For The Assessee : Shri S.N. Soparkar, A.R. ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- This assessee s appeal for A.Y. 2012-13, arises from orde .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rs who are liable to deduct tax are required to deduct tax at a higher rate in all transactions not having PAN of the deductee on or after 1st April 2010. 2. In doing so, the Hon'ble Commissioner of Income Tax (Appeals) erred in the following respects: 2.1 In not appreciating the fact that the appellant paid the consideration to Kracht + Strohe Rechtsanwalte Koln AUER Gmbh ("KSR") a German Law Firm against legal services and deducted tax @ 10% as fee for technical services under Ar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

principal place of business at Germany. The assessee had remitted a sum amounting EURO 10,395/- equivalent to Indian ₹ 7,38,045/- on December, 2012. In accordance with article 12 fee for technical services of DTAA between India and Germany, the assessee had deducted TDS @ 10% to the amount of ₹ 73,804/- and deposited the same on 5th January, 2013. Subsequently, the DCIT CPC TDS, Vaishali, Gajiabad raised a demand of ₹ 90,750/- including interest of ₹ 12512/- on a/c. on s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

case of the assessee decided in appeal no. CIT(A)/VLS/2050/2013 vide order dated 28th May, 2015 which was decided against the assessee. The decision of the ld. CIT(A) is reproduced as under:- 6. Decision: I have carefully considered the facts of the case as contained in the order - passed by the assessing officer as well as the written submission made by AR of the appellant during the appellate proceedings. Originally the DCIT CPC-TDS processed the TDS statement of the appellant and created a de .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ferred an appeal against the intimation dt: 01.03.2013 as well as rectification order dt: 01.03.2014. In the present appeal the core facts are the same as were present in the appellant's own case in Appeal No. CIT(A)/VLS/250/13-14 vide order dt:28.05.2015, which was decided against the appellant by following an earlier decision on the same taken in ITA NO.CIT(A)/VLS/215/13-14 which is enumerated below: "This is a case of short deduction of TDS. During the year the appellant remitted as .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

chnical Knowhow is not chargeable to tax in India. Further it was submitted that although the transaction is not liable to TDS yet the appellant has as an abundant precaution deducted TDS @10% against the alleged rate of 20%. DCIT CPC-TDS vide intimation dt: 01.12.2013 u/s200A of the Act treated the payment as a case of short deduction. Section 206AA prescribes that if the recipient of any sum or income fails to furnish his PAN to the person responsible for deduction of tax at source, the tax is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n'ble ITAT Pune in the case of DDFT Pune v/s Serum Institute of India Limited. It was also submitted that provisions of section 139A(8) of the Act r.w. rule 114C(1) of IT Rules, 1962 prescribed that non-residents are not required to apply for PAN. Section 206AA prescribes that the recipient shall furnish the PAN and such furnishing would be possible only where the recipient required to obtain -PAN. Thus, where the non-residents are not obliged to obtain a PAN, the requirement of furnishing t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

20.01.2010. The relevant portion of this press release is given below: "A new provision relating to tax deduction at source (TDS) under the Income Tax Act, 1961 will become applicable with effect from 1st April, 2010. Tax at higher of the prescribed rate or 20% will be deducted on all transactions liable to TDS, where the Permanent Account Number (PAN) of the deductee is not available. The law will also apply to all non-residents in respect of payment/remittances liable to TDS. As per the n .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of PAN or accuracy thereof, the law requires all deductees and deductors to quote PAN of deductees in all correspondences, bills, vouchers and other documents sent to each other. All deductors are, therefore, advised to intimate their deductees to obtain and furnish their PAN so as to avoid TDS at higher rate. All deductees, including non-residents having transactions in India liable to TDS, are advised to obtain PAN by 31st March, 2010 and communicate the same to their deductors before tax is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

re Bench of ITAT in the case of Infosys BPO Ltd. vide order dt:29.06.2015 has held that provisions of IT Act cannot override the provisions of the Double Taxation Avoidance Agreement (DTAA) and the tax liability of the non-resident cannot exceed the rate prescribed in the relevant DTAA. Hoever, the issue has already been decided, keeping in view the facts and (aw of the case, so following the principle of consistency I do not feel any "need to interfere in the order/intimation u/s 154 of th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

We have heard both the sides and perused the material on record. We noticed that during the year under reference the assessee had received legal services from Kracht+Strohe Rechtsanwalte Koln a law firm of Germany. In accordance with the Article 12 of the Double Taxation Avoidance Agreement between India and Germany the assessee had deducted TDS @ 10% of ₹ 73,804/- as the remittance was made equivalent to Indian ₹ 7,38,045/-. Thereafter, DCIT CPC TDS, Vaishali Gajiabad made rectifica .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he case of Infosys BPO Ltd in which it was held that the provisions of IT Act, 1961 cannot override the provisions of DTAA. 6.1 We also find that the Co-ordinate Bench of the ITAT Ahmedabad in the case of the assessee itself pertaining to assessment year 2014-05 vide ITA No. 1974/Ahd/2015 decided the identical issue in favour of the assessee on 30/09/2019. The relevant part of the decision is reproduced as under:- [4] It is only elementary that, under the scheme of the Income Tax Act 1961- as se .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     Latest Happenings     ↓  

Highlight: Notification regarding GST rate for branded cereal, pulses and flour

News: Notification regarding GST rate for branded cereal, pulses and flour

Highlight: Anti-dumping duty on import of bus/truck tyres from China

Highlight: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Non-payment of service tax - maintenance and repair charges - appellants had knowingly and deliberately shown the repair charges as job work charges to mislead about their taxability - demand confirmed.

Highlight: BAS - execution of the project of smart card for vehicle registration – implementing the SOC-VRC project - The fact that the Government has outsourced some part of the work and paid certain consideration for such outsourced work, does not make the activity subject to service tax.

Forum: Input tax credit

Forum: Cess paid instead of SGST

Forum: Excise duty credit on finished stock at additional place of business.

Circular: Amendments in Hand Book of Procedures 2015-20 –reg.

News: Cabinet approves Extension of time period of the Scheme "Special Industry Initiative for J&K" (Sll J&K) - Udaan

Highlight: Constitution of National Anti-profiteering Authority (NAA) under GST-reg. - Trade Notice

Highlight: Amendments in Hand Book of Procedures 2015-20 –reg. - Various amendments are made in Chapter-4 of Hand Book of Procedures 2015-2020.

Forum: GST rates on mobile recharge business

Circular: Constitution of National Anti-profiteering Authority (NAA) under GST-reg.

Forum: import purchase

Highlight: Sharing of expenses - BAS - promotion of business of group companies - sharing of expenditure for common facilities cannot be treated as service by one to another in such arrangement.

News: RBI Reference Rate for US $

Forum: 3B mistake

Article: Credit of unsold stock [Section 140(3)] - Actual Credit as well as Notional Credit - Part-I - GST Transitional provisions

Circular: Certain Clarifications sought on Construction Services provided in the Real Estate Sector – reg.

News: Anti-dumping duty on import of bus/truck tyres from China

News: Fast-track GST refund, else ₹ 65K cr may be stuck: Exporters

Highlight: It is open to the Settlement Commission to use best judgment in arrival of the figure. Nonetheless it has to explain the manner in which the best judgment figure has been arrived at by the Settlement Commission - HC

Highlight: Deemed dividend u/s 2(22)(e) - advances given to societies - in the absence of legal right of the assessee in the said society the amount advanced cannot be treated as deemed income.

Highlight: When electrical installations are treated as plant and machinery the depreciation has to be allowed @ 25% as per provisions contained u/s 32

TMI Note: Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassment to the honest tax payers

Highlight: Option to avail composition scheme under GST by electronically filing an intimation in FORM GST CMP-02 and FORM GST ITC-03 upto 30-9-2017 - See Rule 3(3A)

TMI Note: Does ICDS apply for the purposes of computing exemption u/s 11 to 13.

Highlight: Voluntary Reporting of Estimated Current Income and Advance Tax Liability - CBDT issues draft notification

TMI Note: Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents would prevail over ICDS.

Highlight: Provisions of ICDS shall prevail w.e.f. AY 2017-18 to the transactional issues dealt therein over earlier judicial pronouncements.

Notification: Levy of anti dumping duty on New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 originating in, or exported from China PR

News: Voluntary Reporting of Estimated Current Income and Advance Tax Liability

TMI Note: In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governing taxation of income like rules 9A, 9B etc. of the Rules, which provisions shall prevail.

TMI Note: Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Minimum Tax (AMT) u/s 115JC of the Act.

TMI Note: Where a term has not been defined under ICDS, nor under the Act, but has different interpretations given to it by the courts in tax cases, and in ICAI Accounting Standards, which interpretation would prevail while interpreting ICDS.

TMI Note: Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation avoidance agreement (DTAA).

TMI Note: In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, which would prevail over the other.

TMI Note: ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific disclosures. Where is the taxpayer required to make such disclosures specified in ICDS.

Notification: Income Computation and Disclosure Standards (ICDS) - New ICDS to be effective from AY 2017-18

News: RBI Reference Rate for US $

Highlight: GST - Detention of goods under transport - discrepancy in documents - the statutory provisions provide a mechanism for adjudication following detention of goods including for the provisional release thereof pending adjudication - HC

Highlight: Reassessment - first few paragraphs of the assessment order dealt with objections and disposed of accordingly - Unfortunately, the manner in which the AO has decided the issue is wholly unsustainable in law - HC

Highlight: Business expenditure u/s 37 - liquidated damage - breach of contract terms - Expenditure was not incurred for any purpose which is an offence or which is prohibited by law - cannot be disallowed - HC

Highlight: Valuation - inclusion of reimbursement of expenses - managing participation of clients in certain mela, fairs, promotional activities etc. - They are liable to service tax on the gross amount received - They cannot restrict their tax liability to only agency commission

Highlight: TDS liability - ITAT confirmed the liability - We do not see how it is possible for us to uphold the order of the Tribunal and when it purports to decide two Appeals of the Revenue by single paragraph conclusion - HC

Highlight: Reopening of assessment - sufficiency of material available with the AO to form a belief that income chargeable to tax had escaped assessment - bogus purchases - seller refused to respond - notice would not be interfered with - HC

Highlight: Exemption u/s 11 - education activities - transport and hostel facilities surplus cannot be considered as business income of the assessee society

News: Draft Notification for insertion of new rule 39A in the Income-tax Rules, 1962 – comments and suggestions-reg.



|| 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