Foundational assessment satisfaction is essential before initiating penalty for cash receipt of immovable-property sale consideration under section 27...
Tax collection at source on purchases removes duplicate withholding obligation, while trade-creditor evidence requires verification before unexplained...
Transfer-pricing comparability requires material turnover effects; adjustments must cover only associated-enterprise transactions and exclude abnormal...
Tax withholding under Section 195 arises only where a payment to a non-resident is chargeable to tax in India. Where consistent Tribunal findings, upheld by the High Court for earlier years, establish that the recipient has no permanent establishment in India and its relevant income is not taxable, the Assessing Officer cannot take a contrary position on identical facts. Section 195(2) applies only when the payer accepts that part of a remittance is taxable but requires determination of the taxable portion or deductible tax. It does not require an application where the entire payment is not chargeable. Consequently, no tax deduction obligation or Section 201 default arises for such payments, and the Section 201 order was quashed.
Tax withholding under Section 195 arises only where a payment to a non-resident is chargeable to tax in India. Where consistent Tribunal findings, upheld by the High Court for earlier years, establish that the recipient has no permanent establishment in India and its relevant income is not taxable, the Assessing Officer cannot take a contrary position on identical facts. Section 195(2) applies only when the payer accepts that part of a remittance is taxable but requires determination of the taxable portion or deductible tax. It does not require an application where the entire payment is not chargeable. Consequently, no tax deduction obligation or Section 201 default arises for such payments, and the Section 201 order was quashed.
Note: It is a system-generated summary and is for quick reference only.
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