Transfer pricing comparables and adjustments: Tribunal revisits loss-maker status, segmental comparability, working capital relief, and risk allocatio...
Business expenditure disallowance failed where commission, related-party salary and promotion payments were supported by records and inquiry was inade...
TDS on Google AdWords payments turned on whether the platform charges were advertising contract payments under Section 194C or fees for technical services under Section 194J. The Tribunal held that fees for technical services require managerial, technical or consultancy services, and a sophisticated automated platform does not by itself create such services. It found Google AdWords to be a self-service system where keyword selection, budgeting and ad content were done by the advertiser, while matching, auction and display operated automatically, with no relevant evidence of direct human intervention. As advertising is specifically covered by Section 194C, the assessee's deduction rate was correct and it was not in default; the demand under Sections 201(1) and 201(1A) was deleted.
TDS on Google AdWords payments turned on whether the platform charges were advertising contract payments under Section 194C or fees for technical services under Section 194J. The Tribunal held that fees for technical services require managerial, technical or consultancy services, and a sophisticated automated platform does not by itself create such services. It found Google AdWords to be a self-service system where keyword selection, budgeting and ad content were done by the advertiser, while matching, auction and display operated automatically, with no relevant evidence of direct human intervention. As advertising is specifically covered by Section 194C, the assessee's deduction rate was correct and it was not in default; the demand under Sections 201(1) and 201(1A) was deleted.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4814 
Join Channel 
