No TDS on export commission to non-residents for services rendered outside India

ACIT Vs Goodrick Group Ltd. (ITAT Kolkata) Assessee paid commission on export orders to two non-resident agents. TDS under section 195 was not deducted by assessee. Revenue’s case was that assessee failed to place on record any non-deduction of TDS certificate under section 195(1). Held by ITAT The section 195(1) casts an obligation to deduct tax only when any sum is chargeable to tax under the provisions of the Act and this position in law was confirmed by the Hon’ble Supreme Court in GE India Technology Centre Pvt. Ltd’s case reported in 327 ITR 456. The fact that the services ...