section 195 - Page 5

Software purchased across the counter as shrink proof software is not akin to royalty

Opus Software Solutions Pvt. Ltd. Vs ACIT (ITAT Pune)

It was held that where the software is purchased across the counter as shrink proof software, then it is not akin to royalty both under the Income Tax Act or the DTAA. The Tribunal held that since the definition of ‘royalty’ has not been amended under DTAA,...

Read More
Posted Under: Income Tax |

Usance interest for delayed payment to holding company liable to TDS

ACIT Vs M/s. Overseas Trading and Shipping Co. Pvt. Ltd. (ITAT Rajkot)

Usance interest paid for the delayed payment to its holding company was not any part of purchase price of goods and was interest within the definition of term ‘interest’ under section 2(28A), therefore, assessee was liable to withhold tax under section 195 from said payment....

Read More

TDS on payments to Non-Residents: An Overview of Section 195

As we are in the era of digital economy, where BEPS action plans has been issued by OECD to tax digital transactions. With the increase in global transactions, Income tax department is also keeping their bird’s eye to the payments made to a non-residents. There has been substantial increase in foreign remittances from India. Indian [&he...

Read More
Posted Under: Income Tax |

NO TDS Deduction on Reimbursement to Foreign Entity

A pure reimbursement doesn't constitute a reward or compensation paid for a service rendered. Hence, a mere reimbursement of expenses cannot be construed as ‘royalty’ or ‘payments for services rendered’ since what is achieved by a reimbursement is a mere repayment of what has been already spent....

Read More
Posted Under: Income Tax |

TDS u/s. 195 in respect of payments to Foreign Professionals, Teachers etc. –Independent Personal Services

In respect of foreign payments, TDS u/s. 195 is quite a grey area of the Indian Income Tax Act (act).  Every payment to a non resident  is not liable for TDS u/s. 195.   A decision as to the coverage of any payment u/s. 195 requires  determination about taxability of income in the hands of NR […]...

Read More
Posted Under: Income Tax |

TDS U/s. 195 not deductible on commission paid to USA based payee

ACIT Vs M/s Calcutta Export Co. (ITAT Kolkata)

ACIT Vs M/s Calcutta Export Co. (ITAT Kolkata) The Revenue has failed to place on record even a single document throwing light towards the fact that the payee herein has rendered any of its services in India thereby making it liable to be assessed u/s 9 r.w.s 5 of the Act. The assessee’s payee has […]...

Read More

No TDS on Export commission paid to NRI for services rendered abroad

ACIT Vs Lux Industries Ltd. (ITAT Kolkata)

ACIT Vs Lux Industries Ltd. (ITAT Kolkata) Since export commission payments to non-resident agents were not taxable in India, as agents were remaining outside, services were rendered abroad and payments were also made abroad TDS under section 195 was therefore, not deductible from payment made to NRI agents. FULL TEXT OF THE ITAT JUDGMENT...

Read More

Form 15CA and 15CB: Complete Details With Examples

The person making payment/ remittance to non – resident holds the responsibility to furnish an undertaking (in form 15CA) attested by a Chartered Accountants Certificate in Form 15CB. So when a person has to make any payment or remit any money to non-resident, the bank will have to verify the payment of tax and act accordingly....

Read More
Posted Under: Income Tax |

TDS u/s 195 not deductible on professional fee paid to non-resident

ACIT Vs Ms. KPMG (ITAT Mumbai)

Since the nature of services rendered  by non-resident  professional showed that none of the services resulted in making available of any technical knowledge, experience, skill, know, how or process, therefore, professional fee paid to non-residents could not be subjected to TDS under section 195....

Read More

Commission of overseas agents for marketing, procurement of orders not liable to TDS u/s 195

M/s. Evolv Clothing Company Pvt. Ltd. Vs ACIT (ITAT Chennai)

Payment of commission to overseas agents for marketing, procurement of orders and systematic market research was not liable to TDS as the same was not liable to tax in India as per Section 9(1)(vii)....

Read More

Browse All Categories

CA, CS, CMA (4,687)
Company Law (5,974)
Custom Duty (7,741)
DGFT (4,221)
Excise Duty (4,361)
Fema / RBI (4,183)
Finance (4,382)
Income Tax (33,007)
SEBI (3,454)
Service Tax (3,553)

Search Posts by Date

May 2020