No tax on amount paid for certification services rendered by foreign entities in absence of fixed place of business in India

DCIT Vs Elitecore Technologies Pvt Ltd (ITAT Ahmedabad) Conclusion: Payments made for certification services by foreign entities were not subject to withholding tax in India if there was no fixed place of business existed in India, aligning with DTAA provisions and judicial interpretations. AO had disallowed deductions related to product certification expenses paid by Elitecore Technologies to non-resident entities from the USA, UK, Korea, and China. These expenses were challenged under Section 40(a)(i) of the Act for non-deduction of withholding tax (TDS) under Section 195. The primary conten...