Payment under inter-linked contracts for manufacturing attracts TDS u/s 194C – Karnataka High court

CIT Vs. Nova Nordisk Pharma India Ltd (Karnataka High court) Date of Decision. 05.01.2012, Appeal No. 1262/2006 The assessee, Nova Nordisk Pharma India Ltd, an Indian Company was engaged in marketing of pharmaceutical products. It was a subsidiary company of NOVA Nordisk, Singapore. One of the products (insulin in medically presentable form), was manufactured by M/s. Torrent Pharmaceuticals Limited (Torrent) and supplied to the assessee company. The raw material was supplied by a foreign company NOVA Nordisk, Denmark. Torrent pursuant to the contract, was required to sell entire output only to...