Nostro Account Maintenance Charges are not subject to TDS u/s 195

ITO Vs Hongkong & Shanghai Banking Corporation Ltd. (ITAT Mumbai) ITAT Mumbai held that Nostro Account Maintenance Charges are in the nature of bank charges levied on transaction and the same are not subject to tax deduction at source u/s. 195 of the Act. Accordingly, disallowance of the same by invoking provisions of Section 40(a)(i) of the Act unjustified. Facts- The Assessee, a non-resident banking organization incorporated/registered in Hong Kong, was engaged in the business of banking in India through its branch in India in accordance with the Banking Regulation Act, 1949 and Reserve ...