section 195

Section 195 Withholding tax provision and its compliances

Income Tax - Any person responsible for paying to a non resident (company or non company) any sum which is chargeable under the provisions of the Act, shall at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of cheque or draft or by any other mode , whichever is earlier, deduct income...

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Whether TRC is required in case of import of Machines?

Income Tax - A new sub-section (4) to section 90 has been inserted by the Finance Act, 2012 w.e.f. 01.04.2013 wherein a non-resident assessee who claims any relief under Double Taxation Avoidance Agreement [DTAA] is required to obtain a Tax Residency Certificate [TRC] from the Government of that country of which he is resident....

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Tax Deducted at Source on Payments to Non Residents

Income Tax - I am trying to start the series of Frequently Asked Questions on Payments to Non Residents. I have prepared the same based on my past experience and based on questions asked to me by my clients or professional colleagues....

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TDS on sale of immovable property

Income Tax - Whenever there is a Sale of immovable property, it creates a fair amount of confusion particularly relating to TDS provisions. According to Income Tax Act, 1961, Section 194IA and 195 deals with TDS relating to Sale of Immovable Property. Let us examine the difference between the 2 sections....

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TDS on Salary –Key Points every employee should know

Income Tax - Taxation on salary is the vital area which should be known not only by the employer but also the employee should be aware about this area. Section.192 of the Income tax act is crucial section under TDS which deals with the TDS deduction on Salary. ...

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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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Cross Boarder transactions are subject to tax in India – HC in Vodafone

Income Tax - The Bombay High Court has dismissed a petition filed by Vodafone International Holdings against the tax department, saying the transaction is chargeable to income tax and the department has the jurisdiction over cross-border mergers since the assets lies in India....

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I-T department asks Sanofi Aventis to Pay 650 Crore withholding Tax over its Acquisition of Shantha Biotech last year

Income Tax - Close on the heels of Vodafone-Essar contesting a tax case in the Bombay High Court, tax sleuths have snared another multi-national company for tax evasion. This time, French pharma firm Sanofi Aventis, that acquired India’s Shantha Biotech last year, has been asked to pay Rs 650 crore as capital gains tax to the Indian government. ...

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S. 195 TDS provisions applies only when remittance results in taxable income

Barclays Bank PLC Vs ADIT (ITAT Mumbai) - Where overseas HO was not liable to pay any tax on interest remitted by assessee, there was no obligation to deduct TDS under section 195(1) on such remittance because TDS provisions are attracted only when such remittance results in taxable income....

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TDS not deductible on payments on behalf of clients as C&F Agent

M/s. KGL Network (P) Ltd. Vs The ACIT (ITAT Delhi) - M/s. KGL Network (P) Ltd. Vs ACIT (ITAT Delhi) Assessee-company made payments on behalf of its clients as Clearing and Forwarding (C&F)Agent which were reimbursed to the assessee-company. The  assessee-company did not make claim of deduction in the P & L A/c. Similar claim of assessee-comp...

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Disallowance U/s. 40(a)(i) on commission to foreign agents paid outside India

Eaton Industrial Systems (P) Ltd. Vs Dy. CIT (ITAT Pune) - Eaton Industrial Systems (P) Ltd. Vs DCIT (ITAT Pune) Where assessee-company paid sales commission foreign of agents for securing export orders from the buyers abroad the services were not rendered by such foreign agents in India, and no part of the said income had arisen in India, therefore, TDS wa...

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ITAT explains law related to TDS on commission paid to non-resident agents

DCIT Vs M/S Sterling Ornament (P) Ltd (ITAT Delhi) - This appeal by the Revenue is directed against the Order of the Ld. Commissioner of Income Tax (Appeals)-XII, New Delhi dated 28.5.2014 pertaining to assessment year 2011-12 on the following grounds...

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TDS U/s. 195 not deductible if Commission Income of Foreign Agent not Taxable in India

DCIT Vs M/s. Gujarat Microwax Pvt. Ltd. (ITAT Ahmedabad) - DCIT Vs M/s. Gujarat Microwax Pvt. Ltd. (ITAT Ahmedabad) ITAT held that the Commission income in the hands of foreign agent is not chargeable to tax in India in the given facts & circumstances and Once an income is not chargeable to tax in India then the question of deducting TDS under the provi...

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Issue Lower/ Nil Rate TDS deduction Certificate within prescribed time

F. No. 275/20/2018-IT(B) - (26/07/2018) - CBDT instructed its officers to Adhere to prescribed time-line for issue of certificate of no deduction or deduction of tax at lower rate u/s 197 and 195 of the I.T. Act-1961...

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Relaxation in conditions for issue of certificate without tax deduction

Notification No. 31/2016-Income Tax - (05/05/2016) - Income Tax Rules 29B is related to Application for certificate authorising receipt of interest and other sums without deduction of tax under sub-section (1) of section 195. In this rule one of the condition for issue of certificate was that person applying for the certificate has not been subjected...

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Procedure for submission of Form 15CC for remittance U/s. 195(6)

CBDT (DIT-Systems) Notification 8/2016 - (04/05/2016) - Under sub-section (6) of section 195 of the Income-tax Act, person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum, whether or not chargeable under the provisions of this Act, is required to furnish the information relating to payment of such sum, in s...

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Excess of TDS deposited U/s. 195 eligible for Interest U/s. 244A

Circular No. 11/2016-Income Tax - (26/04/2016) - The procedure for refund of tax deducted at source under section 195 of the Income tax Act, 1961, to the person deducting the tax is delineated in CBDT Circular No. 7/2007 dated 23.10.2007. Circular No. 7/2007 states that no interest under section 244A of the Act, is admissible on refunds to be gran...

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Online certificate u/s 195(2) and 195(3) for lower/ no deduction

TDS Instruction No . 51 - (04/02/2016) - TDS Instruction No . 51 Request has been received from field formations and tax payers to provide functionality for issue of online certificate u/s 195(2) and 195(3) for lower / no deduction as manual certificates were not being considered during processing of TDS statements by CPC TDS....

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Recent Posts in "section 195"

S. 195 TDS provisions applies only when remittance results in taxable income

Barclays Bank PLC Vs ADIT (ITAT Mumbai)

Where overseas HO was not liable to pay any tax on interest remitted by assessee, there was no obligation to deduct TDS under section 195(1) on such remittance because TDS provisions are attracted only when such remittance results in taxable income....

Read More

Section 195 Withholding tax provision and its compliances

Any person responsible for paying to a non resident (company or non company) any sum which is chargeable under the provisions of the Act, shall at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of cheque or draft or by any other mode , whichever is earlier, deduct income...

Read More
Posted Under: Income Tax |

Whether TRC is required in case of import of Machines?

A new sub-section (4) to section 90 has been inserted by the Finance Act, 2012 w.e.f. 01.04.2013 wherein a non-resident assessee who claims any relief under Double Taxation Avoidance Agreement [DTAA] is required to obtain a Tax Residency Certificate [TRC] from the Government of that country of which he is resident....

Read More
Posted Under: Income Tax |

TDS not deductible on payments on behalf of clients as C&F Agent

M/s. KGL Network (P) Ltd. Vs The ACIT (ITAT Delhi)

M/s. KGL Network (P) Ltd. Vs ACIT (ITAT Delhi) Assessee-company made payments on behalf of its clients as Clearing and Forwarding (C&F)Agent which were reimbursed to the assessee-company. The  assessee-company did not make claim of deduction in the P & L A/c. Similar claim of assessee-company has been allowed in earlier and subs...

Read More

Disallowance U/s. 40(a)(i) on commission to foreign agents paid outside India

Eaton Industrial Systems (P) Ltd. Vs Dy. CIT (ITAT Pune)

Eaton Industrial Systems (P) Ltd. Vs DCIT (ITAT Pune) Where assessee-company paid sales commission foreign of agents for securing export orders from the buyers abroad the services were not rendered by such foreign agents in India, and no part of the said income had arisen in India, therefore, TDS was not required to be deductible [&hellip...

Read More

Tax Deducted at Source on Payments to Non Residents

I am trying to start the series of Frequently Asked Questions on Payments to Non Residents. I have prepared the same based on my past experience and based on questions asked to me by my clients or professional colleagues....

Read More
Posted Under: Income Tax |

Issue Lower/ Nil Rate TDS deduction Certificate within prescribed time

F. No. 275/20/2018-IT(B) (26/07/2018)

CBDT instructed its officers to Adhere to prescribed time-line for issue of certificate of no deduction or deduction of tax at lower rate u/s 197 and 195 of the I.T. Act-1961...

Read More

ITAT explains law related to TDS on commission paid to non-resident agents

DCIT Vs M/S Sterling Ornament (P) Ltd (ITAT Delhi)

This appeal by the Revenue is directed against the Order of the Ld. Commissioner of Income Tax (Appeals)-XII, New Delhi dated 28.5.2014 pertaining to assessment year 2011-12 on the following grounds...

Read More

TDS on sale of immovable property

Whenever there is a Sale of immovable property, it creates a fair amount of confusion particularly relating to TDS provisions. According to Income Tax Act, 1961, Section 194IA and 195 deals with TDS relating to Sale of Immovable Property. Let us examine the difference between the 2 sections....

Read More
Posted Under: Income Tax |

TDS on Salary –Key Points every employee should know

Taxation on salary is the vital area which should be known not only by the employer but also the employee should be aware about this area. Section.192 of the Income tax act is crucial section under TDS which deals with the TDS deduction on Salary. ...

Read More
Posted Under: Income Tax |

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