section 195 - Page 20

National Aviation Co. of India Vs. DCIT (ITAT Mumbai)

National Aviation Co. of India Vs. DCIT (ITAT Mumbai)

When the assessee is prevented from deducting tax u/s 195, the question of his not performing the obligation under law does not arise and thus he cannot be held a defaulter. The assessee cannot be held to be an assessee in default in terms of section 201 and 201(1A) of the Act. This is a case of impossibility of performance and the assess...

Read More

Taxpayer can remit monies abroad without tax deduction if it is of opinion that remittance is wholly exempt from tax

ACIT Vs. Monitor India Pvt. Ltd. (ITAT Mumbai)

Recently, the Mumbai bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of ACIT v. Monitor India Pvt. Ltd [2010-TII-138-ITAT-MUM-INTL] (Judgment date - 8 October 2010, Assessment Year 1999-2000).held that the taxpayer is under no obligation to approach the Assessing Officer and is entitled to remit monies abroad without...

Read More

Payment made to USA entities cannot be disallowed on account of non deduction of tax at source

Central Bank of India Vs. DCIT (ITAT Mumbai)

Central Bank of India v. DCIT- In view of non-discrimination clause under the India-USA tax treaty, the non-resident should be given same treatment as given to resident’s taxpayers. Accordingly, the payment made to USA entities cannot be disallowed on account of non deduction of tax at source....

Read More

Despite section 195 TDS breach, no section 40(a)(i) disallowance

Central Bank of India V/s. The Dy. CIT (ITAT Mumbai)

Article 26(3) of the India-USA DTAA protects the interest of non residents vis-a-vis residents. Article 26(3) provides that payment made to a non-resident will be deductible under the same conditions as if the payment were made to a resident. The exceptions provided in Article 26(3) are not applicable on facts. As per s. 40(a)(i), no disa...

Read More

Compensation including interest on cancellation of contract not taxable in absence of PE

Gold crest Exports Vs. ITO (ITAT Mumbai)

Compensation including interest on cancellation of contract not taxable in the absence of Permanent Establishment of the non-resident in India under India-UK tax treaty...

Read More

Interest and Damages Not Taxable Under DTAA if no PE

Gold crest Exports Vs. ITO (ITAT Mumbai)

Though the damages included an element of interest, the same is not assessable because in a decree or arbitration award, the amount loses its original character and assumes the character of a judgment debt. In substance, interest partake the character of the compensation and is not assessable as interest. Islamic Investment 265 ITR 254 (B...

Read More

Payments to non-residents would be subject to withholding tax only if the income is chargeable to tax- SC

GE India Technology Centre Private Ltd. Vs Commissioner of Income Tax & Anr. (Supreme Court of India)

Appellant(s) are the distributors of imported prepackaged shrink wrapped standardized software from Microsoft and other Suppliers outside India. During the relevant assessment year(s) appellant(s) made payments to the said software Suppliers which according to the appellant(s) represented the purchase price of the abovementioned software....

Read More

TDS on foreign remittance deductible only if tax is assessable in India

A dispute often arises when the payer of the amount to the non-resident feels that the amount to be remitted by him is not recipient's income chargeable under the Indian Income-tax Act. Should the payer in such a case deduct tax at source? It was bel...

Read More
Posted Under: Income Tax |

Withholding tax deductible only if non-resident’s income chargeable to tax in India

The Supreme Court on Thursday rejected the income-tax department’s contention that companies based in India were liable to deduct tax when they make any payment overseas, offering relief to domestic firms and multinational companies based here that w...

Read More
Posted Under: Income Tax |

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

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
Posted Under: Income Tax |

Browse All Categories

CA, CS, CMA (4,699)
Company Law (6,009)
Custom Duty (7,751)
DGFT (4,227)
Excise Duty (4,364)
Fema / RBI (4,189)
Finance (4,397)
Income Tax (33,116)
SEBI (3,462)
Service Tax (3,553)

Search Posts by Date

June 2020
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
2930