If the sum not chargeable to tax in India, then tax not required to be withheld under Section 195 of the Act while making the remittance outside India

AAR Ruling: The amount received on account of assignment of rights, title, interest, obligations and duties in connection with the supply of products is not taxable in India in the absence of a Permanent Establishment and therefore, tax is not required to be withheld under section 195 of the Income tax Act while making remittance outside India [Laird Technologies India Pvt. Ltd. (AAR No. 793/ 2008)(2010-TIOL-06-ARA-IT)].

Facts:

Laird Technologies (P) Ltd. (applicant), an Ind

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