No TDS on Sales Commission to Wholly-Owned Subsidiary under Section 40(a)(i)

DCIT Vs Algonomy Software Pvt. Ltd. (ITAT Bangalore) No TDS deductible on payment made to wholly-owned subsidiary company in respect of sales commission u/s 40(a)(i) Conclusion: TDS was not to be deducted on payments to Manthan Systems Inc. (MSI) for sales commission under section 40(a)(i) as services rendered to assessee by the said Manthan Systems Inc. was not falling within the ambit of FTS or under Article 12 of the treaty, assessee was not liable to deduct TDS on the payment made to the MSI. Held: Assessee-company was engaged in the business of providing software development service, sale...