TMI Blog2018 (5) TMI 1182X X X X Extracts X X X X X X X X Extracts X X X X ..... not entail tax liability of the payee under the Act, as held by the Supreme Court in the case of GE India Technology Centre P. Limited [2010 (9) TMI 7 - SUPREME COURT OF INDIA], sub-section [1] of Section 195 of the Act would not apply. The fundamental principle of deducting tax at source in connection with payment only, where the sum is chargeable to tax under the Act, still continues to hold the field. In the present case, the Revenue has not seven seriously contended that the payment to foreign commission agent was not taxable in India. - Decided against revenue - R/TAX APPEAL No. 290 of 2018 - - - Dated:- 9-4-2018 - HONOURABLE Mr. JUSTICE AKIL KURESHI AND HONOURABLE Mr. JUSTICE B.N. KARIA Mr MANISH R BHATT, Sr Advocate with Mrs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal before the Tribunal. The Tribunal, by the impugned judgment, dismissed such appeal making the following observations : We have heard the rival contentions and perused the material on record carefully. Section 195 required that any person responsible for paying to a non resident any some chargeable to tax shall deduct tax there on at the rate in force. We noticed that assessee has paid commission to non-residents for services rendered in sales and marketing of assessee s product as commission agent outside India. We observe that the agents were notarized and not having fixed base in India and have rendered all the sales and marketing services outside India. We have also perused the judicial pronouncements of the Hon ble Suprem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act consists of the words, chargeable under the provisions of the Act . It was observed that, ..A person paying interest or any other sum to a non-resident is not liable to deduct tax if such sum is not chargeable to tax under the Act. Counsel for the Revenue, however, drew our attention to the Explanation 2 to sub-section [1] of Section 195 of the Act which was inserted by the Finance Act of 2012 with retrospective effect from 1st April 1962. Such explanation reads as under :- Explanation 2 For the removal of doubts, it is hereby clarified that the obligation to comply with sub-section (1) and to make deduction thereunder applies and shall be deemed to have always applied and extends and shall be deemed to have always extended to a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
