section 195

Target marketing on overseas social media or automated advertising platforms not taxable as ‘Royalty’

Income Tax - Target marketing on overseas social media or automated advertising platforms not taxable as ‘Royalty’ In a major relief to taxpayers availing online marketing services from social media platforms like Facebook, the Bangalore bench of Income Tax Appellate Tribunal (ITAT) recently ruled in the case of Urban Ladder Home Décor Soluti...

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Payment to Non-Resident with analysis of ‘Rate In Force’ U/s. 195

Income Tax - 195:-TDS on Payment made to Non-Resident Clause -1 (1) Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest (not being interest referred to in section 194LB or section 194LC) [or section 194LD] or any other sum chargeable under the provisions of this Act (not being […]...

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Sale of property by NRI – How to save huge amounts getting blocked as TDS

Income Tax - Investing in a house property is common for Indians. Many NRIs living abroad own house properties in India. Since it is difficult to manage a house property from another country, an NRI may contemplate selling such Indian house property. In such cases besides finding a buyer, it is also important to understand the tax implications [&helli...

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Section 195 TDS on Non-Resident Payments

Income Tax - 1) Who is responsible to deduct tax under section 195 of Income Tax Act, 1961? Any person responsible for paying to a non-resident, not being a company, or to a foreign company, shall deduct income-tax thereon at the rates in force. 2) Nature of Payment a) Any interest (not being interest referred to in section […]...

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Detailed Analysis of Section 195 along with latest case laws

Income Tax - Any person responsible for paying to a non-resident, not being a company, or to a foreign company, shall deduct income-tax thereon at the rates in force is responsible to deduct tax u/s 195 of the act. Nature of Payment a) Any interest (not being interest referred to in section 194LB, 194LC and 194LD). b) Any […]...

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Tax Guru & Tax Connect 2nd Webinar on Direct Taxes Updates on 10.07.2021

Income Tax - Tax Guru in association with Tax Connect is Organizing a 1 and Half Hour Workshop for discussions on 'Monthly Direct Taxes Updates' on the following topics- Issues & Challenges in Tax Audit for AY 2021-22, Issues & Challenges in Income Tax Returns for AY 2021-22...

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Procedural & technical issues on IDS, 2016 clarified

Income Tax - Clarification on certain procedural and technical issues regarding the Income Disclosure Scheme, 2016 (IDS) under section 119 of the Income-tax Act, 1961 read with section 195 of the IDS -reg. F.No.225/ 282/ 2017/ITA.II Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes (ITA. II) North Block, New D...

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Section 195: 6 Suggestions made by ICAI for Rationalization of Provisions

Income Tax - Finance Act, 2012 extended the obligation to withhold taxes to non- residents irrespective of whether the non-resident has -...

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CA Certificate not required for certain remittances: Govt

Income Tax - Government has recently modified the Foreign Exchange Management (Current Account Transactions) Rules, 2000 and the Liberalized Remittance Scheme (LRS) for resident individuals for further liberalizing the existing guidelines. Accordingly, all resident individuals, including minors, are allowed to freely remit upto USD 2,50,000...

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Vodafone ruling effect – Exporters question TDS on foreign payment post

Income Tax - The Supreme Court judgement on Vodafone tax case seems to have opened a Pandora's box with exporters too expressing reservation on tax deducted at source (TDS) for payment with regard to overseas transactions. Exporters' body FIEO today questioned the applicability of Section 195 of the Income Tax Act, under which they are asked to pay T...

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No TDS on commission paid to a foreign agent for service provided outside India

Evolv Clothing Company Pvt. Ltd. Vs ACIT (Madras High Court) - Section 40(a)(i) did not contemplate order wise commission based on the order value. Consequently, the expenditure on export commission payable to non-residents for services rendered outside India became an allowable expenditure....

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No section 195 TDS on IT support services as same is not technical services

Hitachi Metglas (India) Pvt. Ltd. Vs DCIT (ITAT Delhi) - IT support services availed by assessee-Indian company from foreign companies were standard connectivity and networking services could not be termed as technical services within the meaning of Section 9(1)(vii) and therefore, assessee was not liable to deduct TDS on such expenditures....

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No TDS on Sale of Software by treating it as Royalty

Financial Software and Systems Private Limited Vs CIT (Madras High Court) - Financial Software and Systems Private Limited Vs CIT (Madras High Court) The question of law which is involved is with regard to whether the assessee was liable to deduct Tax at Source in respect of the Computer Software which was dealt with by them, procured from a Non-Resident and sold in the Ind...

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Advertisement charges paid to non-resident company cannot be considered as royalty

Myntra Designs Pvt. Ltd. Vs DCIT (ITAT Bangalore) - Payments made by the Applicant to the Non-resident Company cannot be considered as royalty payments and hence, it does not give rise any income chargeable in India under the Indian IT Act. Held that there is no requirement to deduct TDS under Section 195 of the IT Act....

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Consideration for sale of software with associated hardware cannot be treated as royalty

Autodesk Asia Pte. Ltd. Vs ACIT (ITAT Bengalore) - Autodesk Asia Pte. Ltd. Vs ACIT (ITAT Bangalore) It was the case of the assessee that the sale of software / hardware was made outside India and the proceeds received from Indian distributors / customers was received by the assessee outside India. In the draft Order of Assessment, the AO treated the...

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CBDT notifies New Form 15E and rule 29BA

Notification No. 18/2021-Income Tax/G.S.R. 194(E) - (16/03/2021) - CBDT vide notification No. 18/2021-Income Tax, Dated: March 16, 2021 inserted new rule 29BA. Application for grant of certificate for determination of appropriate proportion of sum (other than Salary), payable to non-resident, chargeable in case of the recipients and also released new FORM No. 15E &...

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CBDT clarifies on Certificates for lower rate/nil TDS/TCS certificate

F.No. 275/25/2029- IT( B) - (09/04/2020) - Clarification on orders dated 31.03.2020 and 03.04.2020 issued under section 119 of the Income-tax Act, 1961 (the Act) by CBDT vide F. No. 275/25/2020-IT(B) regarding issuance of certificate for lower rate/nil deduction/collection of TDS, TCS U/s. 195, 197 and 206C(9) of the Income-tax Act. 1961...

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Lower/nil rate of TDS/TCS applications to be disposed liberally by 27.04.2020

F. No. 275/25/2020-IT(B) - (03/04/2020) - In case of pending applications for lower/nil rate of TDS/TCS for F.Y. 2019-20, the Assessing Officers have been directed to dispose off the applications through a liberal procedure by 27.04.2020, so that the taxpayers may not have to pay extra tax which may cause liquidity issues to them. F. No. 27...

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Certificates for lower rate/nil deduction/collection of TDS or TCS- Reg.

F. No. 275/25/2020-IT(B) - (31/03/2020) - CBDT Order on issue of certificates for lower rate/nil deduction/collection of TDS or TCS uls 195, 197 and 206C (9) when Assesee was given such certificate for Financial year 2019-20 and when Assessee is Applying or Applied for first time for such certificate...

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CBDT proposes to inset new Income Tax rule 29BA and Form 15E

F. No. 370142/24/2019-TPL - (31/12/2019) - Public consultation on the proposal for amendment of Income-tax Rules 1962, to inset new rule 29BA and Form 15E, to give effect to the amendment in section 195 of the Income-tax Act, 1961 (the Act) vide Finance (No.2) Act 2019- reg....

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section 195’s Popular Posts

Recent Posts in "section 195"

No TDS on commission paid to a foreign agent for service provided outside India

Evolv Clothing Company Pvt. Ltd. Vs ACIT (Madras High Court)

Section 40(a)(i) did not contemplate order wise commission based on the order value. Consequently, the expenditure on export commission payable to non-residents for services rendered outside India became an allowable expenditure....

Read More

No section 195 TDS on IT support services as same is not technical services

Hitachi Metglas (India) Pvt. Ltd. Vs DCIT (ITAT Delhi)

IT support services availed by assessee-Indian company from foreign companies were standard connectivity and networking services could not be termed as technical services within the meaning of Section 9(1)(vii) and therefore, assessee was not liable to deduct TDS on such expenditures....

Read More

No TDS on Sale of Software by treating it as Royalty

Financial Software and Systems Private Limited Vs CIT (Madras High Court)

Financial Software and Systems Private Limited Vs CIT (Madras High Court) The question of law which is involved is with regard to whether the assessee was liable to deduct Tax at Source in respect of the Computer Software which was dealt with by them, procured from a Non-Resident and sold in the Indian Market. This […]...

Read More

Target marketing on overseas social media or automated advertising platforms not taxable as ‘Royalty’

Target marketing on overseas social media or automated advertising platforms not taxable as ‘Royalty’ In a major relief to taxpayers availing online marketing services from social media platforms like Facebook, the Bangalore bench of Income Tax Appellate Tribunal (ITAT) recently ruled in the case of Urban Ladder Home Décor Soluti...

Read More
Posted Under: Income Tax |

Advertisement charges paid to non-resident company cannot be considered as royalty

Myntra Designs Pvt. Ltd. Vs DCIT (ITAT Bangalore)

Payments made by the Applicant to the Non-resident Company cannot be considered as royalty payments and hence, it does not give rise any income chargeable in India under the Indian IT Act. Held that there is no requirement to deduct TDS under Section 195 of the IT Act....

Read More

Payment to Non-Resident with analysis of ‘Rate In Force’ U/s. 195

195:-TDS on Payment made to Non-Resident Clause -1 (1) Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest (not being interest referred to in section 194LB or section 194LC) [or section 194LD] or any other sum chargeable under the provisions of this Act (not being […]...

Read More
Posted Under: Income Tax |

Sale of property by NRI – How to save huge amounts getting blocked as TDS

Investing in a house property is common for Indians. Many NRIs living abroad own house properties in India. Since it is difficult to manage a house property from another country, an NRI may contemplate selling such Indian house property. In such cases besides finding a buyer, it is also important to understand the tax implications [&helli...

Read More
Posted Under: Income Tax |

Consideration for sale of software with associated hardware cannot be treated as royalty

Autodesk Asia Pte. Ltd. Vs ACIT (ITAT Bengalore)

Autodesk Asia Pte. Ltd. Vs ACIT (ITAT Bangalore) It was the case of the assessee that the sale of software / hardware was made outside India and the proceeds received from Indian distributors / customers was received by the assessee outside India. In the draft Order of Assessment, the AO treated the money received by […]...

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No TDS on Purchase of software licenses with associated hardware from Foreign Companies

Autodesk Asia Pte Limited Vs DCIT (ITAT Bengalore)

Autodesk Asia Pte Limited Vs DCIT (ITAT Bengalore) The assessee is a Singapore based company, a subsidiary of Autodesk US and the headquarters for Asia-Pacific (APAC) region. It is engaged in the business of manufacturing, designing and supporting computer software and related Autodesk products in the APAC region. It performs or manages a...

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Section 195 TDS on Non-Resident Payments

1) Who is responsible to deduct tax under section 195 of Income Tax Act, 1961? Any person responsible for paying to a non-resident, not being a company, or to a foreign company, shall deduct income-tax thereon at the rates in force. 2) Nature of Payment a) Any interest (not being interest referred to in section […]...

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Posted Under: Income Tax |

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