Patent-settlement expenditure treated as commercially expedient revenue outlay, with foreign-law restrictions inapplicable before the prospective amen...
International transaction benchmarking restricts transfer pricing adjustments to associated-enterprise dealings, while functional comparability govern...
Joint development agreements defer taxable transfer where possession lacks part performance, while completed flats determine consideration and exempti...
Withholding tax on payments to non-residents arises only where the sum is chargeable to tax in India. The note states that commission and allied payments were made outside India to non-resident recipients for services rendered outside India, with no permanent establishment or business connection in India. The view that commission became taxable merely because the order was executed in India was rejected, and there was no material to treat the payments as fees for technical services. As no income accrued or arose in India, tax deduction at source was not required and disallowance for non-deduction was not warranted; the deletion of the disallowance was upheld.
Withholding tax on payments to non-residents arises only where the sum is chargeable to tax in India. The note states that commission and allied payments were made outside India to non-resident recipients for services rendered outside India, with no permanent establishment or business connection in India. The view that commission became taxable merely because the order was executed in India was rejected, and there was no material to treat the payments as fees for technical services. As no income accrued or arose in India, tax deduction at source was not required and disallowance for non-deduction was not warranted; the deletion of the disallowance was upheld.
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