Foreign Commission for Export Orders Not Liable to Section 195 TDS: ITAT Delhi

Ajay Sharma Vs ITO (ITAT Delhi) Material Facts: The assessee, engaged in the manufacture and export of readymade garments, challenged the disallowance of commission paid to a Swedish agent, Belinda Sandell, under Section 40(a)(ia) read with Sections 195 and 9 of the Income-tax Act. The commission related to procurement of export orders from a Swedish buyer and follow-up of invoice payments. The Assessing Officer treated the payment as Fees for Technical Services (FTS) under Section 9(1)(vii)(b) and disallowed it for non-deduction of tax under Section 195. The appeals also challenged a rectifi...