section 195

TDS on Buying a Property from NRI: FAQs

Income Tax - The Income Tax Department may keep an eye on those buyers who have brought property from non-resident and have failed to deduct/deposit TDS on the purchase of property from a non-resident. TDS part with respect to a non-resident is complex and should be complied with the help of an expert who is well aware of […]...

Read More

TDS on Sale of Property in India – Simplified

Income Tax - In case of Sale of Property by Residents IN case of sale of immovable property by the residents in India buyer is required to deduct tax @ 1% u/s 194 IA of Income Tax Act, 1961 on sale consideration if value of property exceeds Rs. 50 Lacs. TDS shall also be deducted in case of […]...

Read More

Who is Responsible for TDS on sale of shares by NRI’s

Income Tax - This is an common question now a days where equity in an Indian Company is held by an NRI and the simple answer to the aforesaid question is that responsibility to deduct tax at source on payment to NRI of such payment is on the Authorised Dealer (read bank through which payments are made )....

Read More

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...

Read More

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....

Read More

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 -...

Read More

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...

Read More

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...

Read More

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....

Read More

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. ...

Read More

Section 195 TDS not to be deducted on routine support services as it is not FTS under India UK DTAA

M/s B.G. India Energy Solutions P Ltd Vs DCIT (ITAT Delhi) - Where services provided by employees of BGIL were merely in the nature of routine support services, the same could not be termed as ‘FTS’ under Article 13 of the India UK DTAA, therefore, there was no requirement for assessee to deduct taxes from such payments in India u/s 195....

Read More

S. 195 TDS deductible on property purchase payment to GPA of NRI

Shri Bhagwandas Nagla Vs ITO (International Taxation) (ITAT Hyderabad) - Shri Bhagwandas Nagla Vs ITO (International Taxation) (ITAT Hyderabad) Conclusion: TDS under section 195 was to be deducted in case payment for purchase of immovable property made to GPA (general power of attorney) holder of non-residents because, at best, GPA holder could be considered as only a co...

Read More

Payment to non-resident to purchase advertisement space for resale to advertisers in India constitutes Royalty

Google India (P.) Ltd. Vs Jt. DIT (ITAT Bangalore) - Payment to non-resident towards purchase of advertisement space for resale to advertisers in India constituted ‘Royalty’ under section 9(1)(vi) and assessee was under an obligation to withhold tax under section 195....

Read More

S. 195 not applies to Foreign agent commission & reimbursement of expenditure not taxable in India

Kannan Devan Hills Plantations Co. (P) Ltd. Vs ACIT (ITAT Cochin) - Foreign agent commission and reimbursement of expenditure were not taxable in India and hence, section 195 had no application....

Read More

No TDS on export commission to non-residents for services rendered outside India

ACIT Vs Goodrick Group Ltd. (ITAT Kolkata) - Where payment of commission on exports to non-resident was not taxable in India due to services rendered outside India, the same was not subject to TDS under section 195....

Read More

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

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...

Read More

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...

Read More

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...

Read More

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....

Read More

Recent Posts in "section 195"

Section 195 TDS not to be deducted on routine support services as it is not FTS under India UK DTAA

M/s B.G. India Energy Solutions P Ltd Vs DCIT (ITAT Delhi)

Where services provided by employees of BGIL were merely in the nature of routine support services, the same could not be termed as ‘FTS’ under Article 13 of the India UK DTAA, therefore, there was no requirement for assessee to deduct taxes from such payments in India u/s 195....

Read More

TDS on Buying a Property from NRI: FAQs

The Income Tax Department may keep an eye on those buyers who have brought property from non-resident and have failed to deduct/deposit TDS on the purchase of property from a non-resident. TDS part with respect to a non-resident is complex and should be complied with the help of an expert who is well aware of […]...

Read More
Posted Under: Income Tax |

S. 195 TDS deductible on property purchase payment to GPA of NRI

Shri Bhagwandas Nagla Vs ITO (International Taxation) (ITAT Hyderabad)

Shri Bhagwandas Nagla Vs ITO (International Taxation) (ITAT Hyderabad) Conclusion: TDS under section 195 was to be deducted in case payment for purchase of immovable property made to GPA (general power of attorney) holder of non-residents because, at best, GPA holder could be considered as only a conduit between assessee and the owners of...

Read More

Payment to non-resident to purchase advertisement space for resale to advertisers in India constitutes Royalty

Google India (P.) Ltd. Vs Jt. DIT (ITAT Bangalore)

Payment to non-resident towards purchase of advertisement space for resale to advertisers in India constituted ‘Royalty’ under section 9(1)(vi) and assessee was under an obligation to withhold tax under section 195....

Read More

S. 195 not applies to Foreign agent commission & reimbursement of expenditure not taxable in India

Kannan Devan Hills Plantations Co. (P) Ltd. Vs ACIT (ITAT Cochin)

Foreign agent commission and reimbursement of expenditure were not taxable in India and hence, section 195 had no application....

Read More

No TDS on export commission to non-residents for services rendered outside India

ACIT Vs Goodrick Group Ltd. (ITAT Kolkata)

Where payment of commission on exports to non-resident was not taxable in India due to services rendered outside India, the same was not subject to TDS under section 195....

Read More

Assessee in default if Not deducted TDS from payment made to non-residents on purchases of immovable property

Sri Teki Venkata Ramana Rao Vs ITO (ITAT Visakhapatnam)

Where assessee failed to deduct tax at source under section 195 from payment made to non-residents on purchases of immovable property from them and also assessee failed to obtain certificate for non-deduction of TDS, assessee was, therefore, rightly treated by AO as assessee-in-default under section 201(1)....

Read More

TDS on Sale of Property in India – Simplified

In case of Sale of Property by Residents IN case of sale of immovable property by the residents in India buyer is required to deduct tax @ 1% u/s 194 IA of Income Tax Act, 1961 on sale consideration if value of property exceeds Rs. 50 Lacs. TDS shall also be deducted in case of […]...

Read More
Posted Under: Income Tax |

Who is Responsible for TDS on sale of shares by NRI’s

This is an common question now a days where equity in an Indian Company is held by an NRI and the simple answer to the aforesaid question is that responsibility to deduct tax at source on payment to NRI of such payment is on the Authorised Dealer (read bank through which payments are made )....

Read More
Posted Under: Income Tax |

TDS U/s. 195 on Grant of license for copyrighted software for internal business purposes

Reliance General Insurance Co. Ltd. Vs Income Tax Officer (ITAT Mumbai)

Reliance General Insurance Co. Ltd. Vs ITO (ITAT Mumbai) We shall first advert to the remittance of USD 100,000 made by the assessee towards licence fees to M/s Fair Isaac International Corpn. We have perused the copy of the agreement entered into by the assessee with M/s Fair Isaac International Corpn i.e “Fair Isaac Order […]...

Read More

Browse All Categories

CA, CS, CMA (4,050)
Company Law (4,455)
Custom Duty (7,214)
DGFT (3,864)
Excise Duty (4,182)
Fema / RBI (3,613)
Finance (3,836)
Income Tax (29,081)
SEBI (3,053)
Service Tax (3,429)

Search Posts by Date

March 2019
M T W T F S S
« Feb    
 123
45678910
11121314151617
18192021222324
25262728293031