International transaction characterisation of domestic divestment of support services business rejected; transaction between resident associated enter...
Minimum Import Price restrictions for Black Pepper, Areca-nuts and Apples upheld; procedural laying failure not fatal, notifications to be placed befo...
Transaction value between related persons requires market-equivalent pricing; importer must prove declared value mirrors ordinary international trade ...
Classification of exported insecticides under export tariff affirmed; reclassification and related penalties set aside and MEIS scrip jurisdiction rec...
Payments to non-resident agents for services and solicitation carried out outside India do not constitute income accrued or arising in India, so they are not chargeable to Indian tax and do not attract the obligation to deduct tax at source under Section 195; reliance on the Supreme Court authority in CIT v. Toshoku Limited supports this principle. Applying that test, the assessment-level disallowance of commission expenses for non-deduction of tax was reversed and the commission payments were held not taxable in India, resulting in deletion of the disallowance.
Payments to non-resident agents for services and solicitation carried out outside India do not constitute income accrued or arising in India, so they are not chargeable to Indian tax and do not attract the obligation to deduct tax at source under Section 195; reliance on the Supreme Court authority in CIT v. Toshoku Limited supports this principle. Applying that test, the assessment-level disallowance of commission expenses for non-deduction of tax was reversed and the commission payments were held not taxable in India, resulting in deletion of the disallowance.
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