Case Law Details
As regards assessee’s submission that the provisions of section 9(1)(vii) will not come into play in this case because the entire testing process is automated, it is well settled that when no human intervention is involved in any services, such services cannot be treated to be of the nature which can be covered by the scope of section 9(1)(vii).
It is also undisputed that question is not of more or less of human involvement. It is, the question of presence of or absence of human involvement. Furthermore testing charges paid by assessee, a manufacturer and exporter of leather goods, to a German company, could not be regarded as fee for technical services prior to amendment in section 9(1) by Finance Act 2010, it was not liable to deduct tax at source while making payment of said charges in assessment year 2008-09
INCOME TAX APPELLATE TRIBUNAL, AGRA
[Coram : Bhavnesh Saini JM and Pramod Kumar AM]
I.T.A. No.: 393/Agra/2012 Assessment year: 2008-09
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After the amendmend made through Finance Act 2012 and with effective from 1st July 2012, the services done by machine comes under Royalty, hence liable for TDS U/S.194J