No TDS on Foreign Commission as Income Not Taxable in India: ITAT Rajkot

ITO Vs Avadh Agri Exports (ITAT Rajkot) In this case, the ITAT Rajkot dismissed the Revenue’s appeal and upheld the deletion of disallowances made under Section 40(a)(i)/(ia) for non-deduction of TDS on foreign commission and ocean freight payments. The Tribunal held that commission paid to non-resident agents for services rendered outside India, without any permanent establishment or business connection in India, does not accrue or arise in India under Sections 5 and 9. Consequently, such payments are not chargeable to tax in India, and no TDS obligation arises under Section 195. Relying on...