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Archive: 25 March 2010

Posts in 25 March 2010

The obligation to deduct the TDS u/s 195 (1) arises only when the payment is chargeable to tax

March 25, 2010 5928 Views 0 comment Print

The assessee, an Indian company remitted mobilization & demobilization charges of Rs. 8.65 crs by way of reimbursement to its parent company, a company based in Netherlands. The assessee applied to the AO u/s 195 (2) for a Nil withholding rate though the AO held that tax had to be deducted at 11%.

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