Case Law Details
Flipkart Internet Private Limited Vs DCIT (Karnataka High Court)
TDS not deductible u/s 195 as the petitioner only seeks to make payment to ‘Walmart Inc.’ of its payment to the seconded employee which is stated to be by way of reimbursement
Facts-
In the course of its business, the petitioner is stated to have made payments in the nature of “pure reimbursements” to M/s.Walmart Inc. for AY 2020-2021 and in that regard had requested the Department for issuance of a ‘Certificate of No Deduction of Tax at Source’. The payment of salaries to the deputed expatriate employees were stated to have been made by ‘Walmart Inc.’ for administrative convenience and the petitioner had made reimbursements to ‘Walmart Inc.’ With respect to such payments, the petitioner had sought for granting of Certificate under Section 195 of the I.T. Act.
It is also submitted that ‘Indo-US Double Taxation Avoidance Agreement (‘DTAA’ for brevity) would be of relevance, as double taxation at source where a non-resident earns income in India and is liable for being taxed for such income in the Country of residence, is to be avoided.
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