Case Law Details
GE India Technology Cen. (P) Ltd. Vs. CIT (Supreme Court)- It was held that the moment a remittance is made to a non resident; obligation to deduct tax at source under section 195 of the Act does not arise. It arises only when such remittance is a sum chargeable to tax under the Income Tax Act under sections 4, 5 and 9 of the Act.
Supreme Court of India
GE India Technology Cen. P. Ltd. Vs. Commr. of I.T.& ANR. (9 September 2010)
Judgment
CIVIL APPELLATE JURISDICTION CIVIL APPEAL NOs. 7541-7542 OF 2010 (Arising out of SLP(C) No. 34306-34307 of 2009) GE India Technology Centre Private Ltd. …. Appellant(s) Versus Commissioner of Income Tax & Anr. ….Respondent(s) With Civil Appeal Nos.7543-7544/2010 @ S.L.P. (C) Nos.34310-34311/2009, Civil Appeal Nos.7545-7548/2010 @ S.L.P. (C) Nos.35340-35343/2009, Civil Appeal Nos.7549-7758/2010 @ S.L.P. (C) Nos.1392-1601/2010, Civil Appeal Nos.7759-7764/2010 @ S.L.P. (C) Nos.1620-1625/2010, Civil Appeal Nos.7765-7767/2010 @ S.L.P. (C) Nos.4230-4232/2010, Civil Appeal No.7768/2010 @ S.L.P. (C) No.4239/2010, Civil Appeal No.7769/2010 @ S.L.P. (C) No.3329/2010, Civil Appeal No.7770/2010 @ S.L.P. (C) No.5174/2010, Civil Appeal Nos.7771-7772/2010 @ S.L.P. (C) Nos.7821-7822/2010, Civil Appeal No.7773/2010 @ S.L.P. (C) No.8410/2010, Civil Appeal No.7774/2010 @ S.L.P. (C) No.9701/2010, Civil Appeal Nos.7775-7776/2010 @ S.L.P. (C) Nos.13440-13441/2010, Civil Appeal No.7777/2010 @ S.L.P. (C) No.13442/2010 and Civil Appeal No.7778/2010 @ S.L.P. (C) No.16264/2010
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Hi,
I found your posts quite helpful…I have a query, in regards to purchase of residential property in India by a resident indian from NRI. Hope you it will not bother your time schedule much…Thanks in advance, Sir..
Agreement to sell was done in April with an advance of Rs 6 lac by cheque in April with out deducting & depositing TDS. Whereas, later NRI seller applied for NIL/Lower deduction, which he got in Sep for .01% only. Now Sec. 195 says for deduction of tax on any sum paid by payer which in chargeable to tax in India.
Since, there is loss on this property transaction and buyer has got the certificate for NIL/Lower which proves, that the sum being paid was not chargeable to tax in India. Would we need to deduct & deposit tax on advance money paid in April with Interest @ 1% p.a. along with penalty of Rs 200/- day for return filing delay for Apr-June Qtr….. OR, we can simply ignore the same and file tax on nominal amount of .01% and file return with no delay penalty for Sep quarter.
In reference to below case law, posted on link – [ https://taxguru.in/income-tax/section-195-payment-element-income-chargeable-tax-india-tds-deductible.html ], although, even composite or gross amount are also covered in definition of amounts chargeable under the act, it still apparently goes on to say, that tax is to be deducted only on amount chargeable under the act, and wherein, application is made u/s 195 (2) or 195 (3), tax needs to be paid accordingly on amount so certified as chargeable to tax in India by the Department.
GE India Technology Cen. (F) Ltd. Vs. CIT (Supreme Court of India)
Kindly clarify the following:
1- Do we still need to pay TDS on advance payment of Rs 6 lac paid in April, mentioned in agreement to Sell.
2- In such case, we will need to pay penal interest and penalty for late filing of TDS return.
3- Or, we can just pay TDS on nominal amount @.01% of transaction amount.
4- Registration is still to happen – Further, before registration, amounts don’t also get chargeable, since property has yet not been transferred. – So, please respond to this contention also..
Thanks in Advance
Mohit