TDS on Foreign Payments & Liquidated Damages as Capital Receipts

ITC Limited Vs ACIT (ITAT Kolkata)

TDS under section 195 not deductible on payments made to foreign commission agents

In the case of ITC Limited vs. ACIT (ITAT Kolkata), the tribunal ruled that tax deduction at source (TDS) under section 195 is not required for payments made to foreign commission agents. The commission was paid for services rendered entirely outside India, and thus, it was not taxable in India. The tribunal referenced the provisions of Section 195 and Section 9(1)(i) of the Income Tax Act, which clarify that income must be attributable to

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