section 195 - Page 21

S. 195 Samsung Electronics Reversed By Supreme Court

The Bombay High Court on Wednesday dismissed Vodafone International’s plea challenging the I-T Department Rs. 12,000 crore demand in tax and penalty on USD 11 billion takeover of Hutchison Telecom. This judgement could impact foreign companies buying assets involving India firms. The court, however, gave liberty to Vodafone to argue...

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Posted Under: Income Tax |

Procedural Provisions Relating to TDS and Filing of TDS Statements under Income Tax Act 1961

T.D.S means the Tax deducted at source. Whenever a person liable to deduct tax of another person under Income Tax Act, deducts tax, the credit of such tax is given to the deductee when his liability to pay income tax is calculated. Such credit is given on the basis of the information given by the deductor to the Income Tax Department by w...

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Posted Under: Income Tax |

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

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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Posted Under: Income Tax |

Section 206AA- A Nightmare for Non-Residents? (TDS Rate without pan)

Currently, tax department is issuing more than 7.5 million permanent account numbers (PANs) in a year through NSDL and, nowadays, PAN is being allotted in less than a week time. With increased modernisation of the Tax Department and electronic processing of tax returns non- quoting of PANs by deductees is creating serious problems in proc...

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Posted Under: Income Tax |

Denial of certificate u/s. 195(3) without considering relevant provisions of law and based on considerations which are extraneous to lawful exercise of power is is contrary to statutory provisions

Mckinsey & Company Inc. Vs. Union of India (Bombay High Court)

The basis on which a certificate has been declined to the Petitioner under Section 195(3) is manifestly misconceived. The impugned order ignores relevant provisions of law, more particularly of Rule 29B, does not take into account the legal implications out of the MOU dated 25 September 2002 between the Government of U.S. and the Governme...

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The obligation to deduct the TDS u/s 195 (1) arises only when the payment is chargeable to tax

Van Oord ACZ India (P) Ltd. Vs CIT (Delhi High Court)

The assessee, an Indian company remitted mobilization & demobilization charges of Rs. 8.65 crs by way of reimbursement to its parent company, a company based in Netherlands. The assessee applied to the AO u/s 195 (2) for a Nil withholding rate though the AO held that tax had to be deducted at 11%....

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If the sum not chargeable to tax in India, then tax not required to be withheld under Section 195 of the Act while making the remittance outside India

Laird Technologies India Pvt. Ltd. In Re. (Authority for Advance Rulings)

AAR Ruling: The amount received on account of assignment of rights, title, interest, obligations and duties in connection with the supply of products is not taxable in India in the absence of a Permanent Establishment and therefore, tax is not required to be withheld under section 195 of the Income tax Act while making remittance outside ...

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How to fill form 15CA for effecting remittances to Non Residents

Form 15CA should be used for furnishing information of remittances in e-mode in accordance with the provisions of section 195 (6) of the Income-tax Act, 1961. The information should be furnished after obtaining a certificate in Form 15CB from an accountant as defined in the Explanation to section 288 of the Income-tax Act, 1961. ...

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TDS not deductible on judgment debt

Islamic Investment Co. Vs. UOI (Bombay High Court)

Argument of the learned counsel on behalf of the Food Corporation of India that since the amount of Rs. 10,31,344 has admittedly been paid on account of interest, it retains its character as interest and, therefore, the Food Corporation of India must be allowed to deduct interest thereon at the rate in force, is not tenable...

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Circular No. 786/2000-Income Tax Dated 7/2/2000

Circular No. 786/2000-Income Tax (07/02/2000)

Circular No. 786-Income Tax Deduction of tax u/s 195 and the taxability of export commission payable to non-resident agents rendering services abroad - clarification regarding. In the Audit Report for 1997-98 (D P No 79(I.T.) The Comptroller & Auditor General (C&AG) raised an objection that the Assessing Officer in computing the Profits ...

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June 2020