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...
The Appellate Tribunal addressed the issue of Tax Deducted at Source (TDS) under section 195, specifically disallowance under section 40(a)(i) for payments labeled as 'Royalty' under section 9(1)(vi). The AO disallowed payments to VBSNI equating them to previous payments to MCI Communication Service, treated as 'Royalty'. However, the Tribunal ruled that VBSNI payments did not qualify as 'Royalty' under DTAA, thus no TDS was required. The Tribunal's decision, upheld by the High Court, directed deletion of the disallowance. The appeal by the revenue was dismissed.
The Appellate Tribunal addressed the issue of Tax Deducted at Source (TDS) under section 195, specifically disallowance under section 40(a)(i) for payments labeled as 'Royalty' under section 9(1)(vi). The AO disallowed payments to VBSNI equating them to previous payments to MCI Communication Service, treated as 'Royalty'. However, the Tribunal ruled that VBSNI payments did not qualify as 'Royalty' under DTAA, thus no TDS was required. The Tribunal's decision, upheld by the High Court, directed deletion of the disallowance. The appeal by the revenue was dismissed.
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