section 195

Engineering Analysis… Any respite for Domestic trade?

Income Tax - Objective Part – 1 – Impact on domestic trade The Author, in this article, discusses the impact of recent decision of Supreme Court [SC] in the case of Engineering Analysis on domestic laws and concludes that equalisation levy will be payable on import of computer software provided the conditions are fulfilled and some impact due [&he...

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Application to AO in New Form 15E under Rule 29BA & Section 195

Income Tax - CBDT issued notification No. 18/2021-Income Tax, Dated: March 16, 2021 & inserted a New Rule Rule 29BA. The Rule would be effective from 1 April 2021....

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New Rule 29BA & Form 15E to Apply for Section 195 Certificate

Income Tax - CBDT Notifies Rule 29BA And Form 15E To Apply for Certificate Under Section 195 W.E.F. April 1, 2021 Section 195 of the Act relates to levy of Tax Deduction at Source (TDS) on any sum chargeable to tax and which is paid to a non-resident, not being a company, or to a foreign company. Prior to the […]...

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SC ruling: No TDS on payment of Royalty to Non resident

Income Tax - The Hon’ble Supreme Court on 2nd March 2021 in the case of Engineering Analysis Centre of Excellence Private Limited Vs CIT, put a rest to the contentious issue of tax on Payment by end users or tech companies in India to suppliers abroad on import of software as ‘Royalty’. Let’s understand what was the issue […]...

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Remittance Abroad – Form No. 15CA & Form 15CB – Lucidly Explained 18 FAQs

Income Tax - Q 1. Who has to submit Form 15CA and 15CB? Ans. Any Person, responsible for paying any sum to a Non Resident, not being a Company, or to a Foreign Company, shall furnish Form 15CA and 15CB. Such sums sought to be remitted outside India may be chargeable or may not chargeable to tax in […]...

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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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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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TDS not deductible on Amounts paid to non-resident manufacturers for resale/use of computer software

Altisource Business Solutions Private Limited Vs ACIT (ITAT Bangalore) - Altisource Business Solutions Private Limited Vs ACIT (ITAT Bangalore) Amounts paid by the assessee to the non-resident computer software manufacturers / suppliers as consideration for the resale / use of computer software, is not payment of royalty for use of copyright in the computer software. Hen...

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TDS not deductible on Reimbursement without any Profit Element

BYK Asia Pacific Pte. Limited Vs ACIT (ITAT Pune) - BYK Asia Pacific Pte. Limited Vs ACIT (ITAT Pune) On going through the documents/material as discussed above, it is evident that Seminar expenses, Training expenses, Printing expenses and Staff welfare expenses are amounts paid by the Indian BO to the Singapore HO, which satisfy the twin conditions ...

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SC Landmark Judgement on TDS on Royalty | Section 195 Vis A Vis DTAA

Engineering Analysis Centre of Excellence Private Limited Vs CIT (Supreme Court of India) - What is of importance is that once a DTAA applies, the provisions of the Income Tax Act can only apply to the extent that they are more beneficial to the assessee and not otherwise. Further, by explanation 4 to section 90 of the Income Tax Act, it has been clarified by the Parliament that where any ...

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No TDS if no separate payment made for purchase of software embedded in mobile phones

Nokia India Sales Pvt. Ltd. Vs Addl. CIT (ITAT Delhi) - Since there was no separate payment made for the purchase of software embedded in mobile phones, therefore, no TDS to be deducted under Section 195 for software embedded in mobile phones imported by assessee during the previous year....

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TDS not deductible on Corporate guarantee fee paid to AE based at Netherlands

Lease Plan India Pvt. Ltd Vs DCIT  (ITAT Delhi) - Lease Plan India Pvt. Ltd Vs DCIT (ITAT Delhi) These appeals are against disallowance made by the learned assessing officer under section 40 (a)(i) on account of non-deduction of tax at source on guarantee commission paid to lease plan Corporation NV Netherland is confirmed holding it to be payment ...

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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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Recent Posts in "section 195"

TDS not deductible on Amounts paid to non-resident manufacturers for resale/use of computer software

Altisource Business Solutions Private Limited Vs ACIT (ITAT Bangalore)

Altisource Business Solutions Private Limited Vs ACIT (ITAT Bangalore) Amounts paid by the assessee to the non-resident computer software manufacturers / suppliers as consideration for the resale / use of computer software, is not payment of royalty for use of copyright in the computer software. Hence, the consideration paid to non-reside...

Read More

TDS not deductible on Reimbursement without any Profit Element

BYK Asia Pacific Pte. Limited Vs ACIT (ITAT Pune)

BYK Asia Pacific Pte. Limited Vs ACIT (ITAT Pune) On going through the documents/material as discussed above, it is evident that Seminar expenses, Training expenses, Printing expenses and Staff welfare expenses are amounts paid by the Indian BO to the Singapore HO, which satisfy the twin conditions of `reimbursement’ as discussed supra,...

Read More

Engineering Analysis… Any respite for Domestic trade?

Objective Part – 1 – Impact on domestic trade The Author, in this article, discusses the impact of recent decision of Supreme Court [SC] in the case of Engineering Analysis on domestic laws and concludes that equalisation levy will be payable on import of computer software provided the conditions are fulfilled and some impact due [&he...

Read More
Posted Under: Income Tax |

Application to AO in New Form 15E under Rule 29BA & Section 195

CBDT issued notification No. 18/2021-Income Tax, Dated: March 16, 2021 & inserted a New Rule Rule 29BA. The Rule would be effective from 1 April 2021....

Read More
Posted Under: Income Tax |

New Rule 29BA & Form 15E to Apply for Section 195 Certificate

CBDT Notifies Rule 29BA And Form 15E To Apply for Certificate Under Section 195 W.E.F. April 1, 2021 Section 195 of the Act relates to levy of Tax Deduction at Source (TDS) on any sum chargeable to tax and which is paid to a non-resident, not being a company, or to a foreign company. Prior to the […]...

Read More
Posted Under: Income Tax |

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 – Application by a person for a cer...

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SC ruling: No TDS on payment of Royalty to Non resident

The Hon’ble Supreme Court on 2nd March 2021 in the case of Engineering Analysis Centre of Excellence Private Limited Vs CIT, put a rest to the contentious issue of tax on Payment by end users or tech companies in India to suppliers abroad on import of software as ‘Royalty’. Let’s understand what was the issue […]...

Read More
Posted Under: Income Tax |

Remittance Abroad – Form No. 15CA & Form 15CB – Lucidly Explained 18 FAQs

Q 1. Who has to submit Form 15CA and 15CB? Ans. Any Person, responsible for paying any sum to a Non Resident, not being a Company, or to a Foreign Company, shall furnish Form 15CA and 15CB. Such sums sought to be remitted outside India may be chargeable or may not chargeable to tax in […]...

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Posted Under: Income Tax | ,

Taxation of Royalty – the SC puts a period to an ever lasting saga

Supreme Court Judgement in the case of Engineering Analysis Center of Excellence Private Limited vs. The Commissioner of Income Tax – dated 2nd March, 2021 TDS on Software purchased from Non-Residents ♠ The matter before the Supreme Court was – Whether payment made to Non-residents in the following 4 cases are ‘Royalties’ as per...

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Posted Under: Income Tax |

SC Landmark Judgement on TDS on Royalty | Section 195 Vis A Vis DTAA

Engineering Analysis Centre of Excellence Private Limited Vs CIT (Supreme Court of India)

What is of importance is that once a DTAA applies, the provisions of the Income Tax Act can only apply to the extent that they are more beneficial to the assessee and not otherwise. Further, by explanation 4 to section 90 of the Income Tax Act, it has been clarified by the Parliament that where any term is defined in a DTAA, the definitio...

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